FX.co ★ Silver Falls 4% from Record High

Silver prices experienced a significant decline of over 4% to $51.8 per ounce on Friday, pulling back from a record high of $54.2. This drop came as investor confidence increased and they shifted their focus back to equities, following President Donald Trump's efforts to mitigate concerns regarding the US-China trade war. Despite this retreat, silver prices still rose more than 3% over the week, marking the ninth consecutive week of gains. This sustained increase was largely driven by market instability earlier in the week due to turmoil in US regional banks, which disclosed incidents of loan fraud, increasing anxieties about financial stability. Additionally, silver received broader support from ongoing geopolitical tensions, growing concerns about rising US debt and government expenditure, and expectations of further Federal Reserve rate cuts, all of which enhanced its appeal as a safe-haven asset. Simultaneously, a liquidity crunch in London’s silver market led to a worldwide rush for physical supply, while robust demand from India further tightened the market, leading some mutual funds to temporarily halt inflows into silver exchange-traded fund (ETF) schemes.