After Hitting an All-Time High, Silver Hits a "Sudden Brake"
Silver (XAG/USD) suddenly reversed direction on Thursday after a frenzied rally that briefly hit an intraday record of $121.65/oz. Following the euphoria, the market began locking in profits—resulting in wild swings.
XAG/USD is now around $115.30/oz, down -1.29% today. Today's range is very wide, from a low of $106.81 to a high of $121.65—a sign of continued volatility.
The trigger for the correction was a classic combination: profit-taking after an extreme rally, coupled with the dollar's brief "breathing" (a small rebound) and month-end flows that cause erratic commodity markets. In these conditions, prices can feel "detached" from daily fundamentals, as positioning is the dominant factor.
Nevertheless, the underlying demand for safe-haven commodities remains intact. The US-Iran geopolitical issue and concerns about the Fed's independence remain the primary fuel for interest in precious metals—so this correction is seen more as a cooling-off after a sprint, not an automatic end to the uptrend.
Looking ahead, the silver market is likely to remain sensitive: if the dollar weakens again and geopolitical tensions remain high, silver could quickly find buyers again. But during periods of volatility this high, the potential for a "shakeout" (sharp ups and downs) remains high—so it's natural for silver to look aggressive in both directions.
Source: Newsmaker.id
