Silver Plunges Double Digits, Wiping Out Two-Day Rally
Silver prices fell sharply on Thursday, immediately erasing the recovery gains of the past two days, indicating the market is still struggling to find a bottom after last week's significant volatility. Gold also weakened amidst choppy trading.
On Thursday, spot silver rose as much as 16.6%, after recovering and breaking through $90/ounce in early Asian trading. Meanwhile, spot gold fell as much as 3.5% before paring its decline due to high volatility.
According to several market participants, pressure is coming not only from precious metals, but also from the weakening sentiment surrounding various risk assets. Thin market liquidity makes price movements feel more false, allowing declines to quickly widen when repeated selling occurs.
The broader context: precious metals rallied strongly last month, supported by speculative momentum, geopolitical tensions, and concerns about the independence of the US central bank. However, that rally abruptly stalled late last week—silver recorded its biggest daily drop in history, while gold suffered its steepest decline since 2013.
The market is also still digesting policy after Kevin Warsh emerged as a potential Federal Reserve chairman. US President Donald Trump stated that he would not appoint Warsh if he intended to raise interest rates, implying that the possibility of a rate cut remains open—a factor that typically supports precious metals, as gold and silver do not yield interest.
Nevertheless, analysts believe volatility will not subside quickly until the direction of monetary policy becomes clearer. Some of the short-term volatility is also driven by investors withdrawing funds from precious metal-based products (such as ETFs), which could increase selling pressure when outflows increase.
Price update at 11:18 a.m. Singapore time: silver fell 12.7% to $76.9495/ounce, while spot gold fell 2.1% to $4,859.20/ounce. Platinum and palladium also weakened, while the Bloomberg Dollar Index edged up 0.1%—adding pressure on dollar-priced commodities. (asd)
Source: Newsmaker.id
