FX.co ★ Silver Extends Rebound

Silver continued its recovery towards the $76 per ounce mark on Friday, reversing the downward trend that began in late January. This shift came as markets reassessed the solid fundamentals underpinning the metal, which had been overshadowed by overly speculative positions leading to unprecedented volatility in its price. Despite the recovery, silver prices have wiped out all the gains achieved earlier in the year, shortly after hitting a peak of $121 on January 29th. This downturn was sparked by increased margin requirements and intensified sell-offs. Additional factors contributing to the decline included the potential appointment of Kevin Warsh as the next Chairman of the Federal Reserve, given his historical stance against maintaining a large Fed balance sheet. The prices of precious metals had previously surged following indications from the U.S. administration of a strategy to devalue the dollar, amidst geopolitical tensions among NATO allies and military powers in the Middle East. Concurrently, optimism around silver's industrial applications, particularly in the realms of electrification and artificial intelligence infrastructure, further fueled positive sentiment.