FX.co ★ Silver Plunges Amid Renewed Selling Pressure

Silver experienced a significant drop of up to 8.5%, nearing $80 an ounce on Thursday, thereby reversing a two-day upward trend as precious metals encountered renewed selling pressure and increased market volatility. Although there was optimism that lower prices might attract buyers, the downturn in silver and other metals seems poised to persist after the recent brief recovery. This decline coincided with a stronger US dollar, bolstered by hawkish signals from the Federal Reserve and growing expectations of a more measured approach to interest rate cuts in the US. Investors weighed the potential impact of Kevin Warsh's nomination as the new Fed chair. Warsh is known for favoring a reduced Fed balance sheet and is anticipated to be less aggressive in cutting rates. Additionally, geopolitical tensions showed signs of easing as the US and Iran scheduled new talks for Friday, although the agenda remains uncertain. While Tehran aims to focus discussions solely on its nuclear program, Washington seeks to include topics such as ballistic missiles, regional militant support, and human rights issues.