Silver experienced a sharp sell-off this week, and the fact is that XAG/USD broke the psychologically important level of $70. This is not just an ordinary correction — technical indicators point to genuine selling pressure, not just technical volatility.

The problem started when the silver price fell below $72.50, and other support levels did not hold. The 100-day moving average at $71.20 failed to stop the decline, followed by a true break below $70. Indicators show RSI in oversold territory, but the MACD confirms a downtrend across multiple timeframes. Fibonacci levels suggest potential support at $68.40 and $66.80.

On the fundamental side, the US dollar has strengthened significantly, and bond yields have risen, reducing demand for non-yielding assets. Economic data from major economies disappointed, and concerns over industrial demand are becoming clearer. The gold-to-silver ratio has widened considerably, reflecting silver’s relative weakness.

Interestingly, silver is more volatile than gold — it has dropped about 8% from its recent high, while gold has only fallen 3%. This indicates silver’s sensitivity to sentiment shifts and its dual role as an industrial metal.

Practically speaking, traders should watch the $68.40 level closely — if this level collapses, we could see additional pressure. On the other hand, there are long-term support factors: renewable energy needs silver, monetary expansion continues, and geopolitical tensions remain. The question now is whether this is a healthy correction or the start of a larger reversal — the coming weeks will tell.