Silver’s Wild Swings Expose Market Fragility

Silver saw a sharp 4.49% rebound but remains 40% below its January highs, highlighting the extreme volatility and structural fragility in the market. Unlike gold, silver’s smaller market size and thinner liquidity make it more susceptible to rapid price shifts, especially when speculative participation is high. The metal’s rally was amplified by leveraged traders, which contributed to both the sharp upside and the subsequent collapse.

Despite the rebound, silver is on track for a second consecutive weekly decline, suggesting the broader correction remains unresolved. The metal is still deep in retracement territory after January’s explosive surge, with price stability hard to achieve. Speculative inflows, particularly from Chinese traders, initially drove silver’s rise, but as the macroeconomic landscape shifted, those positions quickly unwound, causing significant losses compared to gold.

Read more on silver’s technical outlook, market sentiment, and the key factors influencing its next move.