Silver: Fragile sentiment persists – OCBC

Silver has experienced a sharp decline, entering a critical USD 70–80 retracement zone. OCBC Group Research analysts Sim Moh Siong and Christopher Wong note that despite this correction, silver remains sensitive to USD movements and policy uncertainties. A potential period of choppy trading is anticipated as market confidence is not fully restored.

Silver's sharp drop into key zone

"Silver’s sharp drop into the key USD 70–80 retracement zone reflects stop-loss and margin-driven selling. Despite the correction, precious metals remain highly sensitive to USD moves, yield shifts, and policy uncertainty when the Fed leadership changes."

"The speed of the move suggests position-adjustment, stop-loss triggering and margin-related selling, consistent with silver’s higher-beta profile as sentiment remain fragile. Even as prices of precious metals, including silver are now less elevated following the correction, sensitivity to the USD, yield repricing, and uncertainty around Fed policy under new leadership remains high."

"We continue to reiterate that 70–90 region now represents a critical stabilisation zone; sustained failure to hold above this area may risk deeper correction towards USD 58/60 levels."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)