Euphoria Returns, But Silver Volatility Isn't Over Yet
Silver prices continued to strengthen on Monday (February 9th), returning to the spotlight after last week's market volatility. In the European session, spot silver rose around 5.1% to $81.89 per ounce, continuing a major rally following a nearly 10% surge in the previous session.
This strengthening was widely interpreted as buying the dip. After an extreme sell-off that had sharply reduced the value of silver, traders appeared to be returning—not only because prices were perceived as cheap, but also because global markets were beginning to take risks again.
Sentiment from Japan also fueled the situation. The landslide victory of Prime Minister Sanae Takaichi's coalition led the market to view the opportunity for a more expansive fiscal policy as more open, and this typically supports "hard" assets when currencies (especially the yen) are under pressure.
From a geopolitical perspective, the US-Iran talks in Oman helped ease short-term tensions but did not eliminate uncertainty. This means that the safe-haven momentum may fluctuate, but precious metals remain susceptible to new headlines.
The market is now focusing on this week's US data—particularly jobs and inflation—to gauge the Fed's direction. If the data weakens and expectations of interest rate cuts strengthen, silver still has room to rise further. However, if the data is strong, volatility could return, as speculative positions in silver remain sensitive.
Source: Newsmaker.id
