Silver Plummets! Biggest Correction Since 2021
Silver prices experienced a significant decline on Tuesday, with spot prices falling around 7% to $48.49 per ounce, hitting their lowest level in months. This was the largest single-day decline since February 2021, following a sharp decline in gold, reflecting profit-taking after a long rally that took silver prices to recent record highs.
Several factors influenced the decline in silver prices. The strengthening US dollar and market expectations of a delay in interest rate cuts by the US Federal Reserve led to outflows from safe-haven assets like silver. In addition, easing US-China trade tensions and declining demand for safe-haven assets also cooled market sentiment towards this precious metal.
Despite the price correction, the long-term outlook for silver remains positive. Industrial demand, particularly from the renewable energy and electric vehicle sectors, as well as ongoing inflation concerns, could support silver prices to strengthen again. Investors are advised to monitor global economic developments and US monetary policy as indicators of the future direction of silver prices.
Source: Newsmaker.id