Why Are Silver and Gold Sliding Again After Last Month’s Historic Rally?
Source: Kapitales Research
Highlights:
Silver and gold slide again: Silver fell sharply after a short-lived rebound, while gold also declined as precious metals struggled to stabilize following last week’s historic sell-off at the time of writing.
Rally runs out of steam: Last month’s surge, driven by speculation, geopolitical tensions and central bank concerns, ended abruptly, with silver posting a record one-day fall and gold seeing its biggest drop since 2013.
Policy signals in focus: Markets are weighing US Federal Reserve leadership and interest rate expectations, which remain a potential long-term support for non-yielding assets like gold and silver despite near-term volatility.
Precious Metals Lose Momentum
Silver and gold prices fell sharply after a brief rebound, highlighting how fragile sentiment remains in precious metals following last week’s historic market rout. Silver, often referred to as the white metal, struggled to find a clear price floor after extreme volatility wiped out much of last month’s gains. Gold also moved lower, extending losses as investors reassessed macro and policy signals. At the time of writing, market participants were grappling with whether the recent correction marks a pause—or a deeper reset—for precious metals.
Sharp Falls After Brief Recovery
Spot silver dropped around 15% on Thursday, despite briefly climbing above US$90 an ounce during early Asian trading. The sharp reversal underscored how quickly traders exited positions after the earlier rally lost steam. Meanwhile, spot gold declined about 3.2% in choppy trade, reflecting profit-taking and rising uncertainty across global markets. The pullback followed an extraordinary surge last month, when precious metals soared on a mix of speculative momentum, geopolitical tensions, and concerns around the independence of the US central bank.
Policy Uncertainty Back in Focus
Markets are now closely watching the policy backdrop in the United States, particularly following Kevin Warsh’s nomination as chair of the Federal Reserve. US President Donald Trump said Warsh would not have been his choice had rate hikes been under consideration, saying he was confident the Federal Reserve was likely to lower interest rates again.
What This Means for Metals
Lower interest rates typically support gold and silver, as they do not offer yield. However, the latest price action suggests traders are weighing longer-term policy support against near-term volatility. For now, precious metals appear caught between bullish rate expectations and the aftershocks of an overheated rally.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
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Why Are Silver and Gold Sliding Again After Last Month’s Historic Rally?
Source: Kapitales Research
Highlights:
Precious Metals Lose Momentum
Silver and gold prices fell sharply after a brief rebound, highlighting how fragile sentiment remains in precious metals following last week’s historic market rout. Silver, often referred to as the white metal, struggled to find a clear price floor after extreme volatility wiped out much of last month’s gains. Gold also moved lower, extending losses as investors reassessed macro and policy signals. At the time of writing, market participants were grappling with whether the recent correction marks a pause—or a deeper reset—for precious metals.
Sharp Falls After Brief Recovery
Spot silver dropped around 15% on Thursday, despite briefly climbing above US$90 an ounce during early Asian trading. The sharp reversal underscored how quickly traders exited positions after the earlier rally lost steam. Meanwhile, spot gold declined about 3.2% in choppy trade, reflecting profit-taking and rising uncertainty across global markets. The pullback followed an extraordinary surge last month, when precious metals soared on a mix of speculative momentum, geopolitical tensions, and concerns around the independence of the US central bank.
Policy Uncertainty Back in Focus
Markets are now closely watching the policy backdrop in the United States, particularly following Kevin Warsh’s nomination as chair of the Federal Reserve. US President Donald Trump said Warsh would not have been his choice had rate hikes been under consideration, saying he was confident the Federal Reserve was likely to lower interest rates again.
What This Means for Metals
Lower interest rates typically support gold and silver, as they do not offer yield. However, the latest price action suggests traders are weighing longer-term policy support against near-term volatility. For now, precious metals appear caught between bullish rate expectations and the aftershocks of an overheated rally.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au