Silver prices plunged for the third straight session on Friday, dropping over 3.32 percent as traders grapple with renewed US Dollar strength and surging Treasury yields. The precious metal broke below its critical 200-day simple moving average, with bearish momentum now targeting the $61 level. The selloff accelerated following the Federal Reserve’s hawkish pivot earlier this week, which sent yields climbing since Wednesday and triggered broad-based risk-off sentiment across commodity markets.
The breach of the 200-day SMA represents a significant technical deterioration for silver, signaling potential further downside ahead. Traders and precious metals brokers are closely monitoring whether buyers emerge at the $61 support level or if the selloff extends deeper. The strengthening dollar is making dollar-denominated commodities like silver increasingly expensive for international buyers, compounding selling pressure. Market participants remain focused on Treasury yield movements as the primary driver of near-term direction.
FXnCO Insight
Silver’s break below the 200-day SMA suggests traders should watch the $61 level as the next critical support, with continued dollar strength likely to pressure precious metals further in the near term.
Source: FXStreet