"In my view, this contradictory movement reflects a clear struggle between short-term technical factors supporting a rebound and deeper fundamental pressures weighing on the broader trend. The current bounce appears more like a temporary rebalancing following an excessive sell-off rather than the start of a sustained bullish trend, especially amid ongoing uncertainty surrounding US monetary policy and global liquidity expectations."
"What stands out in silver's recent decline is the absence of a clear fundamental catalyst to justify such a sharp drop, reinforcing the argument that the market experienced widespread forced liquidation across multiple asset classes, including equities and cryptocurrencies. From my perspective, this type of decline is often less about changing economic fundamentals and more about liquidity pressures and risk management dynamics, particularly in an environment dominated by algorithmic and systematic trading flows."
Silver (XAG/USD) rebounded to about $76.60 per ounce after an 11.5% single-session loss, yet the metal is still heading toward a third consecutive weekly decline. The bounce reads as a technical rebalancing following an excessive sell-off rather than the start of a sustained rally, amid ongoing uncertainty about US monetary policy and global liquidity. The sharp decline lacked a clear fundamental catalyst, pointing to widespread forced liquidation across equities and cryptocurrencies driven by liquidity pressures, risk management, and algorithmic trading flows. Continued volatility risk will persist until US inflation trends and Federal Reserve policy clarify.
Read at London Business News | Londonlovesbusiness.com
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