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fxJun 8, 2026, 5:26 PM

Silver Hovers Near 200-Day SMA After Sharp Drop, Downside Risks Persist

Silver (XAG/USD) edged higher on Monday after an nearly 8% plunge on Friday triggered by a stronger-than-expected US Nonfarm Payrolls report. The data reinforced expectations of prolonged higher Fed rates, keeping downside pressure on the metal.

XAGUSD

Silver (XAG/USD) is trading modestly higher on Monday, recovering slightly from Friday's steep decline of nearly 8%. The drop followed a stronger-than-expected US Nonfarm Payrolls (NFP) report, which strengthened the case for the Federal Reserve to maintain higher interest rates for longer.

The metal is now hovering near its 200-day Simple Moving Average (SMA), a key technical level. Analysts warn that downside risks persist as rate expectations weigh on the non-yielding asset. The strong labor market data reduces the likelihood of near-term Fed easing, limiting silver's upside.

Further technical weakness could emerge if XAG/USD breaks below the SMA support, with market focus now on incoming US economic data and Fed commentary for directional clues.

Source: FXStreet Forex News