Silver (XAG/USD) experienced a sharp decline on Friday, challenging the 200-day Simple Moving Average (SMA) near $67.79, after registering a daily loss of nearly 8% and poised to end the week down by almost 10% [1]. The drop was triggered by a stronger-than-expected US Nonfarm Payrolls report, which strengthened the US Dollar and pressured silver prices lower [1]. The white metal hit a nine-week low of $68.03, with sellers dominating the market as indicated by the Relative Strength Index (RSI) approaching oversold territory [1].
Technical analysis suggests that if XAG/USD falls below the 200-day SMA, the next support levels are the March 23 swing low at $61.01 and the psychological $60.00 mark, followed by the November 13 low at $54.39 [1]. For a bullish reversal, resistance is seen at $70.00, then at the May 28 low-turned-resistance at $71.79, and the psychological $75.00 level, with the 50-day SMA at $76.17 as a further upside target [1].
The article notes that silver prices are influenced by factors such as US Dollar strength, investment demand, mining supply, and industrial demand, particularly from sectors like electronics and solar energy [1]. The current market sentiment is bearish, with sellers firmly in control and momentum indicators signaling further downside risk [1].
No forward-looking analyst opinions or market reactions beyond technical outlook are provided in the article [1].
CONCLUSION
Silver has suffered a significant weekly decline, driven by robust US employment data and a stronger dollar. Technical indicators point to further downside risk if key support levels are breached, with sellers firmly in control. The market impact is high, and investors should monitor upcoming support and resistance levels for potential price action.