Silver Faces Downward Pressure in Spot Market
Spot silver prices dipped below the critical 85 USD/oz level today, reaching a low of 84.92 USD/oz with a 0.82% decline. The move reflects growing caution among traders amid shifting market dynamics.
Key Drivers Behind the Drop
- Strengthening US dollar reduces appeal of dollar-denominated precious metals
- Rising US Treasury yields dampen demand for non-yielding assets like silver
- Technical indicators suggest short-term overbought conditions, triggering profit-taking
Market participants are now eyeing the upcoming non-farm payrolls report, which could shape the next price direction. A failure to reclaim 85.5 USD may open the door for a test of the 84 USD support level in the near term.