Silver slumps over 5% as US data fuels risk-on mood, extends metals rout

💡 DMK Insight

Silver’s 5% drop signals a shift in market sentiment, and here’s why it matters: The recent upbeat economic data from the US has sparked a risk-on environment, leading traders to favor equities and other riskier assets over precious metals like silver. This shift is evident as XAG/USD trades at $80.40, well below its opening price. For silver traders, this trend could indicate a longer-term bearish outlook, especially if the economic data continues to support growth and inflation fears subside. Keep an eye on the $78 support level; a break below could trigger further selling pressure. On the flip side, if economic indicators start to show signs of weakness, we could see a reversal as traders flock back to safe havens. The key here is to monitor upcoming economic reports and any shifts in Federal Reserve policy, as these could significantly impact silver’s trajectory. Watch for volatility in the coming days, especially around key economic announcements, as they could provide trading opportunities.