FX.co ★ Silver Declines on Profit-Taking

Silver experienced a significant decline of approximately 4% to around $110 per ounce on Friday, as investors chose to secure their profits after a monumental rally to record highs. The strengthening dollar also contributed to the increased pressure on the precious metal. Nevertheless, silver remains set to achieve over a 50% gain in January, making it the strongest monthly performance ever recorded and marking the ninth consecutive month of gains. This remarkable rally has been driven by ongoing geopolitical and economic uncertainties that have heightened the demand for safe-haven assets. Additionally, a marked depreciation of the dollar, influenced by policy shifts in Washington and President Donald Trump's apparent lack of concern for the currency's weakness, has played a significant role in boosting silver prices. On Friday morning, Trump is expected to announce his nomination for the Federal Reserve chair, with speculation pointing to former Fed governor Kevin Warsh as the likely candidate. The continued surge in silver has also been bolstered by a constrained physical market, with both investment and industrial demand reaching unprecedented levels.