Silver Prices Plummet Amid Market Turbulence
Recently, the precious metals market has experienced significant volatility. Spot silver prices have broken below a key support level, with intraday losses reaching 4.72%. At the same time, New York silver futures have also weakened, with losses widening to 5.00%, currently trading at $87.72 per ounce.
Why Is Silver Suddenly Dropping?
This sharp decline in silver prices is influenced by multiple factors, including a stronger U.S. dollar, rising expectations of Federal Reserve rate hikes, and weakening industrial demand.
- Strong Dollar Pressures Precious Metals: The rising U.S. dollar index has reduced the appeal of dollar-denominated silver.
- Monetary Policy Shifts: Investors are concerned that the Fed will continue tightening monetary policy, dampening market sentiment for precious metals.
- Sluggish Industrial Demand: Slower growth in silver usage in solar power and electronics has led to a decline in physical demand.