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Silver prices (XAG/USD) surged over 2% on Monday, reaching $86.35, as the US Dollar retreated from recent gains. The precious metal rebounded from intraday lows of $79.65, driven by reduced safe-haven demand for the Dollar and broader market speculation. Analysts attribute the rally to the Dollar's weakness amid mixed economic data and anticipation of Federal Reserve policy shifts. The move highlights the inverse relationship between the Dollar and commodities like Silver. A weaker Dollar reduces holding costs for non-Dollar investors, boosting demand for Silver as a hedge against inflation and geopolitical risks. Traders are closely monitoring technical levels, with $86.50 acting as immediate resistance and $80.00 as critical support. For global markets, sustained Silver gains could signal broader inflationary pressures or a shift in central bank policies. Investors should watch upcoming Fed statements and US employment data for clues on Dollar direction. Breakout above $87.00 could trigger further bullish momentum, while a retest of $80.00 may test the rally's sustainability.
