Spotlight: Silver

2026-06-07

Silver Spotlight: XAG/USD

Silver has endured a punishing week, with spot prices plunging to $69.103 following a brutal 6.34% single-session decline that has left the metal trading decisively below both key moving averages. The weekly loss of 8.61% and monthly drawdown of 10.04% underscore the severity of the current selloff, which has pushed silver into technically oversold territory with an RSI reading of just 23.8.

The technical picture has deteriorated markedly. Price now sits well beneath the EMA50 at 76.645 and has breached the EMA200 at 70.744, a development that typically signals sustained bearish momentum. Silver is hovering just above the critical 61.8% Fibonacci retracement level at 68.133 — a zone that often serves as a final line of defence before deeper corrections materialise. A breach here would open the path toward the 35.27 low that anchors the 12-month range.

The macro backdrop offers little immediate relief. Dollar strength has persisted amid recalibrated Federal Reserve rate expectations, while the gold-silver ratio has widened as investors favour gold’s safe-haven appeal over silver’s industrial exposure. Concerns surrounding global manufacturing activity have weighed on silver’s dual-use demand profile, particularly from the solar panel and electronics sectors.

Looking ahead over the next two to three sessions, the extreme oversold RSI reading may prompt short-covering rallies, but any recovery faces formidable resistance at the EMA200 near 70.744 and subsequently the 50% Fibonacci level at 78.285. Traders should watch the 68.133 support closely; failure to hold would confirm an extension of the prevailing downtrend.

Source and Copyright: Traders’ Leadership Council, 2026. Strictly no trading advice.