Old Cat's Gold Digging: Silver Tumbles from Highs, Short-term Volatility Intensifies

Today’s spot silver market experienced intense fluctuations. It opened sharply at $78.199 and briefly surged to an intraday high of $79.007, but then faced concentrated selling by bears, causing the price to fall rapidly, with a low of $75.480. It eventually stabilized around $76.202, down $1.967 from yesterday’s close, a decline of 2.52%.

On the news front, recent market focus has been on the resonance of multiple bearish factors. The Bloomberg Commodity Index annual weight adjustment is underway, forcing passive funds to reduce large positions in gold and silver. Due to the relatively weak liquidity in the silver market, this large-scale sell-off has caused disproportionate impacts on its price. Meanwhile, domestic exchanges have also raised the margin requirements for silver trading, directly triggering a wave of long liquidation, further intensifying downward pressure. Additionally, concerns over "de-silverization" technology in the photovoltaic industry continue to suppress industrial demand expectations for silver.

From a technical perspective, silver prices encountered strong resistance after reaching the $79 level. The subsequent rapid decline broke through the $78 support level and found short-term support around $75.5. Currently, the price is oscillating around the $76 mark, with a short-term moving average system forming a bearish alignment, indicating a weak short-term trend. However, it’s important to note that the current price has deviated significantly from the moving averages, suggesting a potential technical rebound.

Considering multiple factors, market sentiment remains cautious in the short term. Investors are advised to stay on the sidelines for now and wait for market sentiment to stabilize. Aggressive traders can look for opportunities to buy low and sell high within the range, with resistance at $77-$77.5 and support at $75.5-$76. If the price can effectively break above $77.5, it may retest the $79 high; if it falls below $75.5, further downside risks should be watched closely.

Disclaimer: This article reflects personal opinions only and does not constitute any investment advice. The market carries risks; investors should exercise caution, make independent decisions based on their own circumstances, and bear all associated risks.