Silver price weakens as fragile momentum, hawkish Fed outlook cap upside

💡 DMK Insight

Silver’s drop to $73.05, down 0.65%, signals a struggle against a weaker USD. With the US Dollar pulling back, you’d expect silver to rally, but this isn’t happening. It suggests underlying weakness in demand or perhaps profit-taking after recent gains. Traders should keep an eye on the $72.50 support level; a break below could trigger further selling pressure. On the flip side, if silver can reclaim $74, it might indicate a reversal and attract buyers. Watch for any shifts in sentiment around inflation data or Fed comments, as these could impact both silver and the broader commodities market. If the USD continues to weaken, silver could eventually find its footing, but right now, caution is warranted as the market digests these dynamics.