03.02.202614:13:48UTC+00Silver Rebounds 10% After Record Selloff

Silver experienced a significant rebound on Tuesday, soaring over 10% to approximately $87.5 per ounce. This recovery comes in the wake of a historic selloff that resulted in a record 27% decline on Friday, followed by a further 6% drop on Monday. The recent volatility is attributed to investors cashing in profits after silver reached record highs last week. Compounding the market's reaction was President Donald Trump's nomination of Kevin Warsh as the new Federal Reserve chair, a choice perceived as more hawkish than anticipated. Prior to the downturn, silver's appeal as a safe haven was bolstered by factors such as increased geopolitical and economic uncertainty, concerns over currency devaluation, and apprehensions about the Federal Reserve’s autonomy. A persistent structural supply deficit, alongside robust investment inflows—particularly from Chinese speculators—also supported the earlier rally. Attention remains on geopolitical tensions, with significant developments such as the upcoming US-Iran talks slated for Friday and renewed peace negotiations in Ukraine following recent Russian military actions.