Silver Price Forecast: XAG/USD plunges near 5% on firm USD

💡 DMK Insight

Silver’s nearly 5% drop signals a shift in market sentiment, and here’s why that matters: The recent spike in US Treasury yields and a stronger US Dollar have created a perfect storm for silver prices. With XAG/USD currently at $73.49 after hitting a high of $76.87, traders should be cautious. This decline could indicate a broader risk-off sentiment in the market, as investors flock to safer assets. If the dollar maintains its strength, we might see further downside for silver, potentially testing support levels around $70. On the flip side, if Treasury yields start to soften, silver could rebound quickly, making it a volatile asset to watch. Keep an eye on the correlation with gold prices as well; if gold starts to recover, it might pull silver up with it. For now, monitor the $70 support level closely, as a break below could trigger more selling pressure. The next few trading sessions will be crucial for determining whether this is a temporary dip or the start of a more significant downtrend.