The tracked price of Silver has crashed over 30% in the last 24 hours, now sitting at below $80/OZ. Gold price has also fallen, but Silver’s is a much steeper crash. Analysts cite heavy profit-booking, overbought conditions & a stronger US dollar for the sharp correction.
The drop came as a shock to previous metal investors. Gold has more than doubled since last year, while silver has climbed to nearly four times its price from the same period. Even more remarkably, silver has doubled since December alone, signaling accelerating demand in recent months.
In addition, early Friday morning US President Trump announced his plan to nominate Kevin Warsh as the next chair of the Federal Reserve. Investors started selling off precious metals in favor of the USD again, as Warsh is someone who supports Trump’s desire to rebuild the US Dollar and slash interest rates. Furthermore, He has a hawkish track record from his time as a Fed governor from 2006 through 2011 and is considered likely to maintain the Fed’s independence.
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Just a day earlier, spot silver had eased 2.1% to $114.141 after reaching $121.64, and was up more than 60% for the month on supply deficits and momentum buying. Next up, traders are watching the U.S. jobs report for January, due on Feb. 6 at 8:30 a.m. ET from the U.S. Bureau of Labor Statistics, for any read-through to rate-cut pricing. Any signs of a rate cut could further hit Silver and Gold prices, swinging hopes back to USD and stocks.