Silver Falls Again: Profits Take Their Place, Market Remains Hot
Silver prices fell around 2% to below $82 per ounce on Tuesday. This decline ended the previous two days of gains as many traders began locking in profits. Volatility in the precious metals market remains high after the past few weeks were marked by extreme fluctuations.
Despite a rebound, silver is still far from its peak. The white metal is said to be down around 33% from its record high on January 29, just before the major sell-off that reduced its value by almost 50%. This means that market sentiment has not fully recovered and its movements are still easily "shocked."
The situation escalated after US Treasury Secretary Scott Bessent attributed the sharp fluctuations to the activity of traders from China. He considered the recent silver rally more like a speculative boom, not a rise driven by strong fundamentals.
Investors' attention now turns to major US data releases this week, particularly the pending employment and inflation reports. This data will provide clues as to the direction of the Fed's interest rate policy. Markets generally expect the Fed to hold rates in March, with the potential for two more cuts in the second half of the year. In line with silver, gold, platinum, and palladium also weakened on Tuesday. (az)
Source: Newsmaker.id
