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Silver falls more than 8%, gold down 3%. What's next

Silver certainly got its moment in the spotlight last week as a parabolic move went stratospheric. The put silver on front pages around the world and prompted some hand-wringing from the world’s richest man. There are rumors about squeezes and margin calls prompting the last leg of the move on Friday and now that air is coming out of the market. Silver is down $6.61/oz to $72.36. It’s the largest one-day nominal fall ever, but amazingly, it still doesn’t erase Friday’s surge.Technically, the 38.2% retracement of the rally since November 21 is at $70.46 and that should lend some support. The 50% level clocks in at $66.31.Precious metals are a sentiment-driven market right now but the silver market is much smaller than gold. That gives retail an outsized influence compared to gold, which is largely driven by central bank buying and selling.Gold has also been hit by profit taking today but it’s down 3% after also hitting record highs late last week. We’re also in a tricky time of year for trading. Liquidity is low everywhere and that can lead to outsized swings as hedge funds are reluctant to lean against excesses and market makers limit participation. For the year ahead, the market appears to be tightly grasping onto the idea that Trump will nominate a dovish Fed member and continue to intervene in the economy in ways that makes the US dollar a less-attractive store of value. The gold rally really kicked off in late-August when he fired the head of the BLS — the agency that publishes non-farm payrolls.He is also back to talking about the US taking over Greenland and the administration has pledged tariffs even if the Supreme Court blocks the current tariff regime.
This article was written by Adam Button at investinglive.com.

๐Ÿ”— Source

๐Ÿ’ก DMK Insight

Silver’s recent parabolic surge isn’t just a flash in the panโ€”it’s a signal of deeper market dynamics at play. The sudden spike has drawn attention not only from retail traders but also from institutional players, raising concerns about potential squeezes and margin calls. This kind of volatility often attracts speculative trading, which can amplify price movements in both directions. Traders should be wary of the psychological impact this has; when the world’s wealthiest express concern, it can lead to increased caution among investors. Keep an eye on key resistance levels that could trigger profit-taking or further buying pressure. For those looking to trade silver, monitoring the $25 mark could be crucial. A sustained break above this level might indicate further bullish momentum, while a drop back below could signal a reversal. Watch for volume spikes as well; they often precede significant price action. The real story here is how this surge could ripple through related markets, like gold and even cryptocurrencies, as traders reassess their risk exposure across assets.

๐Ÿ“ฎ Takeaway

Watch for silver to hold above $25; a break could signal more upside, while a drop below may trigger profit-taking.

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