FX.co ★ Silver Surges After Profit-Taking Run

Silver experienced a significant surge, advancing over 6% to exceed $76 per ounce on Tuesday. This rebound followed an 8% plunge the prior day, marking its most substantial daily drop in over five years due to temporary profit-taking pressure. Geopolitical tensions continue to command attention, particularly in the ongoing Russia-Ukraine conflict. This is amplified by reports of a potential Ukrainian drone incident near President Putin’s residence, despite ongoing negotiations with key matters still unresolved. In a separate development, the United States hinted at the possibility of further action against Iran if its nuclear and missile programs progress. Despite recent fluctuations, silver remains on track for an impressive gain of approximately 200% this year, representing one of its strongest annual performances since 1979. This performance is fueled by a combination of strong industrial demand, ongoing supply constraints, consistent ETF inflows, central bank purchases, and three U.S. interest rate cuts. Markets are increasingly anticipating further policy easing by 2026.