New Delhi, Dec 30: Silver prices bounced on Tuesday after a dramatic sell-off a day earlier erased part of the metal’s historic rally, as traders locked in profits following record highs.
Spot silver climbed 3% to $74.41 an ounce by 0322 GMT, rebounding from its biggest daily loss since August 2020. The metal had surged to an all-time high of $83.62 on Monday before retreating sharply.
The correction followed a period of rapid gains that left the market stretched, analysts said, with technical indicators signaling overheated conditions.
Silver has surged about 154% so far this year, far outpacing gold, driven by tight supplies, low inventories and growing industrial demand. Its inclusion on the U.S. critical minerals list has also drawn increased investor interest.
“I’m expecting the longer-term rally to continue for both gold and silver,” said Kelvin Wong of OANDA. “Price targets in the next six months are $5,010 an ounce for gold and $90.90 for silver.”
Broader precious metals markets also showed signs of stabilizing after Monday’s steep declines. Platinum rose 1.1% on Tuesday after recording its sharpest daily drop on record, while palladium added 1.1% following a 16% plunge in the previous session.
Analysts say expectations of monetary easing by the U.S. Federal Reserve continue to underpin demand for precious metals, even as short-term volatility increases toward the end of the year.
