Silver trades at $86.08 as of writing , up 2.97% in the last 24 hours after suffering one of the most violent sell-offs in modern market history. The metal remains nearly 29% below its all-time high of $121.08 set on January 29, 2026. The rebound follows a dramatic two-day collapse that erased roughly $2.5 trillion in silver market value. Moves of this magnitude rarely fade quietly. What triggered the reversal? Metals Recover as Dip Buyers Step In Precious metals rebounded on Tuesday after last week’s steep liquidation. Gold rose more than 2% , trading at $4,906 per ounce as of writing, while silver climbed over 3% intraday before settling lower at the current levels. Market participants pointed to renewed dip-buying interest following a drawdown that exceeded 20% in both metals. Analysts noted that sharp corrections often reset positioning after speculative excess builds too quickly. Warsh Nomination Sparks Volatility The sell-off began after President Donald Trump nominated Kevin Warsh as the next Federal Reserve chair. Gold closed 9% lower on Friday, marking its largest single-day decline in over four decades. Investors reassessed leverage-heavy positions as uncertainty around monetary policy resurfaced. While Warsh’s nomination eased fears over Fed independence for some, the immediate reaction exposed how stretched positioning had become across precious metals. Margin Calls Accelerate Liquidation Forced selling amplified the move. Traders who borrowed heavily to speculate on rising gold and silver prices faced margin calls as prices dropped. CME Group responded by raising margin requirements on gold and silver futures, reducing available leverage. Source: X The policy shift intensified selling pressure in Asian markets, where borrowing activity had surged during the rally. Asian equities reflected the stress before rebounding sharply a day later. Structural Questions Resurface Silver’s collapse revived long-standing concerns around market structure. JPMorgan’s past involvement in precious metals manipulation returned to focus after silver recorded its largest intraday plunge since 1980. The bank previously paid $920 million in fines for spoofing activity between 2008 and 2016, with several traders convicted. While no evidence links current price action to misconduct, the episode highlighted how leverage and concentrated capital can magnify volatility during stressed conditions. Central Bank and Sovereign Demand Remains Active Despite the sell-off, demand from large buyers persisted. Reports indicated that China purchased billions of dollars’ worth of gold and silver during the dip. Central bank accumulation has supported metals since global reserve freezes reshaped currency risk assessments. Geopolitical tensions and concerns over currency debasement continue to frame precious metals as strategic assets rather than short-term trades. Banks Outline Bullish Long-Term Targets Major financial institutions maintained optimistic outlooks. JPMorgan stated that Warsh’s nomination did not alter its gold thesis, projecting prices between $6,000 and $6,300 by year-end. Bank of America described gold as the primary hedge in 2026 and forecast silver topping between $135 and $309. Source: X UBS projected gold reaching $5,000 by the first quarter of 2026 amid a broader commodities rally. Independent forecasts echoed the trend, with Coincodex projecting silver at $249.83 by the end of 2026 and $347.33 by 2030. Momentum Resets After Excess Silver's correct flushed speculative excess from the market, according to analysts. With leverage reduced and volatility recalibrated, attention has shifted back to fundamentals. As the dust settles, investors now weigh whether the rebound marks stabilization or the next leg of a longer-term trend. Either way, silver’s price action has reclaimed center stage.
