Silver price crash: Silver plunges nearly $9 in 3 hours as gold also falls sharply

Silver prices saw a sudden sharp fall in global markets, dropping nearly -$9 per ounce in less than 3 hours, showing extreme volatility, as per The Kobeissi Letter on X. Gold prices also crashed sharply at the same time, falling about -$220 per ounce in under 3 hours, pointing to heavy profit booking.

This sharp fall came after a strong rally earlier, where both gold and silver had jumped very fast in international markets. In international markets, spot silver rose around 5% to $89.38 per ounce earlier, before the sharp reversal happened. Silver had earlier touched a record high of $121.64 per ounce, showing how fast prices moved in recent days, as per Mint.

Silver price crash

Before the price went up again, silver fell to a one-month low of $71.33. This happened after a huge 27% fall in one day last Friday. Gold prices also went up earlier and reached almost $5,100 per ounce. People bought more gold because they wanted a safe place for their money. The rise in gold and silver prices happened because tensions increased between the US and Iran, making investors feel worried and move their money into gold and silver.

Gold market volatility

A weaker US dollar also helped metal prices earlier, as a softer dollar makes gold and silver cheaper for global buyers. The US dollar later weakened against most major currencies, except the Japanese yen, after strong US economic data. Despite earlier gains, silver prices later turned volatile again, with sharp selling leading to the sudden global fall highlighted by analysts.

Experts say such sharp moves show extreme instability in precious metals, with fast rallies followed by sudden crashes. Investors are being warned to stay cautious, as silver and gold prices are swinging heavily within hours. The nearly -$9/oz fall in silver confirms a strong reversal, ending the short-term rally and shocking global markets, as per the X post by The Kobeissi Letter.

FAQs

Q1. Why did silver prices fall nearly $9 in a few hours?

Silver prices fell due to heavy profit booking after a very fast rally and sudden selling in global markets.

Q2. Did gold prices also fall along with silver?

Yes, gold prices dropped sharply at the same time as investors booked profits after strong gains.