#GoldSilverRally
Gold and Silver Rally Through Ongoing Market Volatility
Silver whipsawed again Thursday, plunging as much as 17% before rebounding 6% in Asian trading. The metal has now lost over a third of its value since hitting an all-time high of $121.64 on January 29.
Thin liquidity is amplifying every move. Silver’s smaller market makes it volatile even in calm conditions. Recent swings, however, are the most extreme since 1980. Market makers are widening spreads and stepping back, leaving liquidity weakest precisely when it’s needed most.
Chinese buyers — who powered much of the rally — have stepped aside. Prices in Shanghai have flipped to a discount versus global benchmarks. The nine-day Lunar New Year break starting February 16 is keeping traders light on positions, draining demand as volatility peaks.
That kind of instability rarely stays contained. It quickly spills into margin rules, risk controls, and forced selling across futures markets.