FX.co ★ Silver Plunges on Profit-Taking After Record Rally

Silver experienced a significant decline of over 13%, settling at approximately $100 per ounce on Friday. This drop was spurred by profit-taking activities which led to a more extensive pullback in the precious metals market. Just a day earlier, silver had reached an unprecedented high of $121.64 and was on course for an impressive monthly gain exceeding 40%. This upward trajectory, spanning nine consecutive months, represents the longest streak in recent years, buoyed by sustained economic uncertainty, geopolitical tensions, a weakening US dollar, and a constrained physical market characterized by record investment and industrial demand.

Geopolitical tensions continued to escalate following President Donald Trump's executive order to impose tariffs on goods from countries exporting oil to Cuba—an action that further intensified pressures on Mexico. Additionally, Trump encouraged Iran to engage in nuclear negotiations, while Iran countered with threats of retaliation and promises of a swift response.

In terms of monetary policy, Trump announced the nomination of former Federal Reserve governor Kevin Warsh as the prospective chair of the Fed, concluding months of speculation regarding the future leadership of US monetary policy.