"Liquidity Shrinks, Sentiment Deteriorates"
Slides to 73 Dollars, Then Slightly Rebounds
On the 5th, silver prices, which had posted a record intraday decline last week, at one point fell by about 17% during the session.
According to Bloomberg News, as of 1:44 p.m. on the 5th (Korea time), spot silver was trading at 77.01 dollars, down 12.65% from the previous trading day. Around 12:00 p.m. that day, the price had dropped by about 17% and fallen into the 73-dollar range, but it rebounded slightly on the back of bargain hunting.
This scale of decline comes just four trading days after the downturn recorded on the 30th. After that, silver prices remained weak for two days through the 2nd, then attempted a rebound on the 3rd and 4th, supported by bargain buying.
Christopher Wong, a strategist at OCBC Bank, told Bloomberg News, "Investor sentiment appears to have weakened across asset classes, including equities and metals," adding, "In a situation where liquidity is limited, a negative feedback loop that amplifies the decline is repeating."
Mark Cranfield, a strategist at Bloomberg Market Live, said, "Traders will be watching the recent low just above 71 dollars this week, but the more important level is 70 dollars," noting, "Silver has not fallen into the 60-dollar range since December of last year, and if it drops below that, it will trigger risk-off sentiment across assets."
Meanwhile, at the same time, spot gold prices were down 1.63%, and spot palladium prices were also 2.39% lower.
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