Silver price pulls back from record high as safe-haven demand wanes

💡 DMK Insight

Silver’s recent drop from $94 to around $91.70 signals a classic profit-taking scenario, and here’s why that matters: After hitting an all-time high, the 1.70% decline indicates traders are cashing in, which is common after such significant price movements. This correction could be a healthy reset, but it also raises questions about the sustainability of the rally. With safe-haven demand pulling back, traders should monitor the $90 level closely; a breach could trigger further selling pressure. On the flip side, if silver holds above this level, it might attract buyers looking for a dip, especially with ongoing inflation concerns and geopolitical tensions that typically bolster precious metals. Keep an eye on the daily chart for potential support around $90. If silver can bounce back, it could signal renewed bullish momentum. Conversely, a sustained drop below this level might lead to a more extended correction, impacting related assets like gold (XAU/USD), which often moves in tandem with silver. Watch for volume spikes as a key indicator of market sentiment in the coming days.