Silver plunged over 3.80 percent on Thursday, dropping to $57.62 after reaching a weekly high of $60.94 as precious metals faced heavy selling pressure. The sharp decline comes amid strengthening US Dollar momentum and rising risk aversion triggered by escalating Middle East tensions. The XAG/USD pair continues to form lower highs, with bears now targeting the $55 level as the next key downside objective.
The precious metals sector is experiencing broad-based weakness as investors flee to safe-haven currencies rather than traditional metals amid geopolitical uncertainty. Traders and brokers should monitor how silver responds at current levels, as a break below $57 could accelerate the move toward $55. The combination of dollar strength and shifting risk sentiment is creating challenging conditions for silver bulls who had pushed prices above $60 earlier this week.
FXnCO Insight
Watch for potential short opportunities if silver fails to reclaim $58.50, with tight stops above $59 and initial targets at the $55 support zone.
Source: FXStreet