Analyst: Precious Metals Volatility to Persist, Rebound Depends on Dollar Trend and Other Factors

Odaily News On Thursday, silver prices plummeted significantly, with volatility persisting as a stronger dollar triggered a new round of market adjustments. Spot silver prices fell by up to 16% to $73.58 per ounce, down over 30% from recent historical highs, with the latest decline at 8%. The U.S. Dollar Index rose by up to 0.2% to 97.79. FOREX.com analyst Fawad Razaqzada stated, "If this (dollar) rebound is more than just a brief rally, it could continue to weigh on gold prices." Eva Manthey, a commodity strategist at ING, noted, "Silver is often referred to as 'gold on steroids,' with its percentage swings typically significantly higher than gold's." She explained that the silver market is smaller and influenced by both investment and industrial demand, leading to greater price volatility. Analysts expect volatility in the precious metals market to continue as investors reassess last year's record-breaking rally and this year's historic pullback. For now, Manthey believes the recent sell-off is more likely a technical or cyclical correction rather than a structural weakening, as the macroeconomic fundamentals remain solid. Manthey added, "The speed and sustainability of any further recovery will depend on the dollar's trend, interest rate expectations, and overall risk sentiment." (Jin10)