Silver prices (XAG/USD) are extending their correction on Friday, November 6, 2026, falling from a weekly high of $53.45 to near $51.40 during European trading. The decline is attributed to a strengthening US Dollar, as investors adopt a cautious stance ahead of the upcoming US Nonfarm Payrolls (NFP) data for October, scheduled for release at 13:30 GMT. The US Dollar Index (DXY) has risen by 0.36% to approximately 101.92, further pressuring silver's appeal as a risk-reward investment.
Analysts anticipate the US NFP data to show employers hired 65,000 new workers in October, a significant increase from the 29,000 recorded in September. The Unemployment Rate is expected to remain steady at 4.2%, while Average Hourly Earnings are projected to grow at a moderate pace of 2.9% year-on-year, down from 3% in September. Despite these expectations, the Federal Reserve's monetary policy is likely to remain focused on tightening, with Dallas Fed President Lorie Logan emphasizing the need for at least two more quarter-point rate hikes due to persistent inflation risks.
Technically, silver is trading at $51.45, maintaining a bearish near-term bias as it holds below the 9-week Exponential Moving Average (EMA) at $56.85 and well under the 61.8% Fibonacci retracement at $59.35. The Relative Strength Index (14) stands at 36.47, indicating that while downside momentum has eased slightly, sellers still dominate the market. Key resistance levels are identified at $56.85, $59.35, $71.24, and $83.13, while support is found at $42.41 and $20.84.
Silver's price movements are influenced by various factors, including its safe-haven status, industrial demand, and the behavior of the US Dollar. As a yieldless asset, silver tends to rise with lower interest rates and is often used as a hedge during high-inflation periods. The metal's widespread use in industries such as electronics and solar energy also plays a significant role in determining its price.