FX.co ★ Silver Plunges Amid Broad Liquidation Wave

Silver tumbled nearly 10% to below $76 per ounce, deepening a sharp reversal as broad-based liquidation across financial markets forced investors to sell precious metals to raise cash. The downturn intensified even as US Treasury yields fell to multi-month lows, indicating that the move was driven less by interest-rate repricing and more by liquidity stress and rapid unwinding of positions after an extended rally. The selloff tracked steep declines in gold and copper, underscoring cross-commodity pressure. While markets still anticipate softer CPI data and continue to price in two Federal Reserve rate cuts later this year, near-term flows are being dictated by deleveraging. Silver’s dual identity as both a monetary and industrial metal likely amplified volatility amid mounting concerns over global growth. Even so, lower yields and longer-term hedging demand linked to fiscal uncertainty remain structural supports once the bout of forced selling abates.