Old Cat's Gold Digging: Silver Plummets from High, Short-term Volatility Intensifies

Today's spot silver market experienced violent fluctuations. After opening higher at 78.199 USD in early trading, it surged to an intraday high of 79.007 USD, but subsequently encountered concentrated short selling, with prices retreating rapidly and touching a low of 75.480 USD. Eventually, it stabilized around 76.202 USD, down 1.967 USD from yesterday's closing price, representing a decline of 2.52%.

On the news front, market focus has recently concentrated on the resonance of multiple negative factors. Bloomberg's commodity index annual weight adjustment is underway, forcing funds to passively reduce large positions in gold and silver. Due to relatively weak liquidity in the silver market, this large-scale selling has had a disproportionate impact on its price. Meanwhile, domestic exchanges have also raised silver trading margin requirements, which directly triggered a wave of long position liquidations, further intensifying downward price pressure. Additionally, market concerns about the photovoltaic industry's "de-silvering" technology continue to suppress silver's industrial demand expectations.

From a technical perspective, silver prices encountered strong resistance after touching the 79 USD round level, and the subsequent sharp decline broke through the 78 USD support level, finding short-term support around 75.5 USD. Currently, prices are consolidating around the 76 USD level, with short-term moving averages forming a bearish alignment, indicating weakish short-term trends. However, it should be noted that current prices have deviated significantly from the moving averages, suggesting a need for technical correction.

Considering multiple factors comprehensively, short-term market sentiment remains cautious. I suggest investors wait and observe temporarily, awaiting market sentiment stabilization. Aggressive traders can focus on range trading opportunities (high selling, low buying), with upper resistance levels at 77-77.5 USD and lower support levels at 75.5-76 USD. If prices can effectively break through 77.5 USD, they may retest the 79 USD high; if they break below 75.5 USD support, caution is warranted regarding further downside risks.

Disclaimer: This article is merely a personal perspective sharing and does not constitute any investment advice. The market carries risks; investment requires caution. Investors should make independent decisions based on their own circumstances and bear risks accordingly.