Silver shudders, XAG/USD tumbles 13% as metals rout continues

💡 DMK Insight

Silver’s 13% drop is a wake-up call for traders: volatility is back. The recent plunge in XAG/USD highlights a significant shift in market sentiment, especially after reaching record highs just a week ago. This sharp decline could signal a broader risk-off sentiment, potentially impacting correlated assets like gold and even cryptocurrencies, as traders reassess their positions. With Silver now back at the lower end of a 40% decline, it’s crucial to watch for potential support levels around $0.24. If this level holds, it might attract bargain hunters, but a break could lead to further selling pressure. Here’s the flip side: while many will be quick to panic, this could also present a buying opportunity for those looking to capitalize on a rebound. Keep an eye on the daily RSI for signs of oversold conditions, which could indicate a reversal. As we move into the next week, monitor any macroeconomic news that could further influence precious metals, especially inflation data or Fed announcements. Traders should be prepared for continued volatility as the market digests this sharp correction.