06.02.202605:50:43UTC+00Silver Whipsaws in Volatile Trade

Silver experienced a significant rise of over 3% to surpass $73 per ounce on Friday, following an earlier drop of nearly 10% during the session. This volatility reached levels not seen since 1980. The fluctuations in silver prices have been considerably more pronounced than those in gold, which can be attributed to silver's relatively smaller market size, less liquidity, and substantial speculative trading. Despite the recent surge, silver is heading for its second straight week of declines and is still approximately 40% below its peak on January 29. In January, silver, along with other precious metals, soared to record highs due to increased geopolitical risks, economic uncertainty, and apprehensions regarding the US Federal Reserve’s autonomy, all of which heightened demand for safe-haven assets. The rally was further amplified by speculative purchasing, especially from Chinese traders, rendering prices susceptible to a swift downturn as market sentiment shifted. Pressure on the precious metals market was further exacerbated after the dollar's sharp recovery, following the nomination of Kevin Warsh as the next Fed Chair—a move perceived as a more hawkish appointment.