Silver prices are crashing Friday, plunging nearly 8% on the day and tracking towards a 10% weekly loss as the white metal tests critical support at the 200-day Simple Moving Average near $67.79. The sharp selloff follows a stronger-than-expected US Nonfarm Payrolls report that bolstered the dollar and reduced expectations for aggressive Federal Reserve rate cuts. Traders and precious metals dealers are watching closely as silver approaches the psychologically important $61.00 level, with momentum indicators signaling continued downside pressure.
The robust jobs data has shifted market sentiment dramatically, driving capital away from non-yielding assets like silver. Commodity brokers report heavy liquidation in precious metals positions as traders unwind bullish bets placed earlier this year. The move lower is particularly severe for leveraged traders who accumulated positions above $70.00, with margin calls likely accelerating the decline.
FXnCO Insight
Monitor the 200-day SMA at $67.79 as a critical line in the sand—a daily close below this level could trigger accelerated selling towards $61.00, while any stabilization here may offer short-term bounce opportunities.
Source: FXStreet