XAGUSD weekly: silver drops 4.4% to $72.21, 2026-06-01

Where XAGUSD closed the week

Silver opened Monday at $75.543 and closed Friday at $72.208, a drop of $3.335 or 4.4%. The week's high came early Tuesday at $76.974, while Wednesday's session produced the low at $72.420. Friday's volume of 39,177 contracts was notably lighter than the 140,000+ daily average earlier in the week.

What moved price

The dollar's broad strength dominated precious metals this week. Thursday's headline confirmed USD reversed its earlier declines against EUR, JPY, and GBP, putting pressure on dollar-denominated commodities. Silver's Wednesday selloff accelerated as traders rotated out of industrial metals.

Asian market stress added to the bearish tone. South Korea's KOSPI dropped sharply on Thursday while the won hit a 17-year low against USD. The PBOC set its USD/CNY reference rate well above estimates, signaling tolerance for yuan weakness. This combination pushed safe-haven flows toward the dollar rather than precious metals.

The week ahead

No high-impact economic events are scheduled for the upcoming week. Without major data releases, silver will likely track broader dollar movements and risk sentiment. If Asian markets stabilize, you could see some recovery toward the $73.50 area. Continued stress in Korea or China would keep pressure on industrial commodities, potentially testing support near $72.00.

Positioning

LHFX client sentiment shows 62.6% of positions are long, with 37.4% short as of Thursday morning. This long bias suggests retail traders are viewing the dip as a buying opportunity. When the majority leans one way after a sharp move, the market often tests their conviction before reversing.

Levels to watch

The week's low at $72.420 is immediate support. If price closes below $72.00, the next major round number becomes relevant. Resistance sits at Wednesday's high of $75.039, then Tuesday's peak at $76.974. A close above $75.00 would signal the selloff has paused.

Byline: LHFX Research

Risk disclaimer. CFD trading involves substantial risk and is not suitable for every investor. Leverage works both ways and can amplify losses beyond your initial deposit. The analysis above is general market commentary and does not constitute investment advice or a recommendation to buy or sell any instrument. LHFX is regulated by the FSC Mauritius and the FSCA in South Africa.