Silver and platinum prices plunge as volatility grips precious metals markets

Silver and platinum prices plunge amid index rebalancing pressure

Silver and platinum prices plunge as traders react to aggressive commodity index rebalancing.
Passive funds have started selling metals that rallied sharply during recent months.
As a result, spot platinum dropped nearly eight percent while silver fell about six percent.

Silver previously surged above eighty-four dollars per ounce during thin holiday trading.
Strong retail demand from China amplified price gains and volatility.
However, that momentum reversed quickly once institutional selling emerged.

Gold and palladium also declined alongside broader precious metal weakness.
Meanwhile, TD Securities warned that silver showed signs of a blow-off top.
Citigroup estimated multi-billion dollar outflows from gold and silver futures this week.

Silver and platinum prices plunge as supply tightness meets tariff risk

Silver and platinum prices plunge despite ongoing physical supply constraints.
Inventories remain tight in London after large shipments moved to the United States.
Those flows followed tariff concerns linked to Washington’s Section 232 investigation.

Borrowing costs eased slightly but still sit at historically elevated levels.
Traders must pay higher premiums due to limited liquidity.
Bank of America noted that speculative activity magnified recent price swings.

Geopolitical risks continue to influence market sentiment across precious metals.
Tensions involving Venezuela, Greenland, and Asia support intermittent haven demand.
Meanwhile, investors monitor US economic data for Federal Reserve policy signals.

Lower interest rate expectations typically support non-yielding assets like gold and silver.
Gold recently posted its strongest annual performance since nineteen seventy-nine.
Silver outperformed further, rising nearly one hundred fifty percent over the past year.

SuperMetalPrice Commentary:

Silver and platinum prices plunge highlights fragile market structure and speculative excess.
Index-driven selling now outweighs supportive fundamentals like tight supply.
However, sustained industrial demand and policy easing could stabilize prices after volatility fades.