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Silver prices (XAG/USD) plummeted nearly 8% on Friday, testing the 200-day Simple Moving Average (SMA) near $67.79, with the weekly decline approaching 10%. This sharp drop followed a stronger-than-expected US Nonfarm Payrolls report, which bolstered the dollar and pressured commodities. The 200-day SMA is a critical technical level for silver, and a breakdown below this could signal further downside toward $61.00. The move reflects broader market dynamics where safe-haven assets struggle amid strong US economic data and a resilient dollar.
For traders, the key focus is on whether silver can hold above the 200-day SMA or if it will accelerate toward $61.00. A sustained break below $67.79 could trigger technical sell-offs and retest multi-year support levels. Conversely, a rebound above this level might attract short-term buyers. The US dollar's strength remains a dominant factor, with the Federal Reserve's policy outlook and inflation data likely to influence silver's trajectory in the coming weeks.
The decline in silver has implications for global markets, particularly for investors in the Gulf and MENA regions who may view this as an opportunity to assess risk exposure in commodity-linked portfolios. Traders should monitor the Fed's next moves, upcoming inflation reports, and geopolitical developments affecting industrial demand for silver. The $61.00 level could become a pivotal psychological and technical target in the near term.
