Silver Rises After Dramatic Two-Day Slump
Silver rebounded above $83 per ounce on Tuesday, clawing back some losses after a sharp two-day selloff that erased as much as 40% of its value from record highs. Precious metals scaled fresh all-time highs throughout January, driven by heightened geopolitical and economic uncertainty, currency debasement concerns, and threats over the Federal Reserve’s independence, all of which boosted safe-haven demand. A structural supply deficit in the silver market, alongside rising investment inflows, particularly from Chinese speculators, further amplified the rally. The reversal came on Jan. 30, when silver plunged a record 26% after US President Donald Trump nominated Kevin Warsh as the next Fed chair, widely seen by markets as a hawkish candidate. The decline was exacerbated by a rapid unwind of speculative positions among Chinese investors, although the same cohort could once again underpin prices if dip-buying emerges.