Silver Plunges Amid Renewed Selling Pressure

Silver plunged as much as 16.5% to around $73.5 an ounce on Thursday, snapping a 2-day rebound as precious metals faced renewed selling pressure and heightened volatility.

Despite hopes that dip buyers might step in at lower levels, the decline in silver and other metals appears set to continue after the recent rebound failed to hold.

The selloff coincided with a stronger dollar, fueled by hawkish signals from the Federal Reserve and expectations of a slower pace of US rate cuts.

Investors considered the implications of Kevin Warsh’s nomination as Fed chair, noting his preference for a smaller Fed balance sheet and expectations that he would be less aggressive on rate reductions.

Additionally, geopolitical tensions eased after the US and Iran scheduled a fresh round of talks for Friday, though the scope remains uncertain.

Tehran seeks to confine discussions to its nuclear program, while Washington wants to address ballistic missiles, regional militant support, and human rights issues.