FX.co ★ XEvils-Ash | XAG/USD, SILVER

Spot silver traded between $71.56 and $63.29 before settling at $64.88, down $3.16 or 4.64% for the week. The 2-year Treasury yield increased 2.25% to 4.179%, while the Dollar Index increased 0.96% to 100.760. Silver dealers are already familiar with the results of that combination. Both sides attacked the metal, and Friday's closing creates early vulnerability for Monday. At the beginning of the week, the DXY surged from 99.384 and continued to rise. The fact that silver moved in the opposite direction the entire period reveals everything about the current state of the market. The entire issue with silver at the moment is that the DXY is regaining the 100 level. Every foreign buyer is paying more for the same ounce, and last week there was an instantaneous decline in physical demand. Buyers outside of the US do not intervene when the dollar runs close to a full percent in five sessions. Before placing new orders, they wait for the currency to settle, which eliminates the bid from under the price. Silver plummeted over five percent without encountering any resistance because speculative traders were already lowering their exposure heading into the week and there was no actual purchase to offset the selling. While the dollar continued to rise at the same time, the selling continued on its own. The daily swing chart and the moving averages show a downward trend. Following a rally from $61.50, a new main top has formed at $71.56, suggesting that traders are continuing selling rallies. There is a retracement zone between $66.53 and $65.34 within this range. The closing beneath this region points to Monday's early weakness. The tone should be established by the way traders respond to this zone. The downward targets are concentrated at $61.50, $61.00, and $60.83. The latter represents half of the maximum. An acceleration to the downside could be triggered by a trade through a significant long-term low at $59.34.