Yesterday, the silver market played out a thrilling drama. During the Asian trading session, spot silver briefly surged past $93.75/oz, hitting a historic high, but the subsequent move caught the bulls off guard— the US government issued a new key mineral tariff announcement, causing silver prices to plummet instantly, with a sharp drop of 7.3% intraday to around $86.40. Up to now, silver prices have been oscillating around $90, trying to regain stability.

What exactly happened? The key lies in the reversal of policy expectations. The US President recently signed a document announcing the suspension of import tariffs on key minerals (including silver), shifting to negotiations with trade partners. Previously, the market was frantic to buy and stockpile due to fears of supply disruptions, but this policy shift directly burst that bubble—bullish funds collectively panicked and fled.

Another background factor is the extremely crowded technical setup. Over the past 50 trading days, silver has gained more than 80%, far outpacing gold. Indicators like RSI and MACD have long been overbought, and the severely overbought trend cannot withstand any slight disturbance. Yesterday’s negative news became the "last straw," triggering a large-scale stop-loss cascade.

But there’s also a detail worth noting—why didn’t silver prices continue to fall? On one hand, the demand for silver from the global photovoltaic and new energy industries remains unchanged—this is a necessity. On the other hand, geopolitical tensions in Venezuela, Iran, and other regions still exist, and risk aversion has not fully dissipated. It’s this tug-of-war between these forces that allowed silver prices to find buyers at low levels and climb back above $90.

Honestly, this kind of intense volatility actually presents opportunities for traders—once policy expectations clarify, market logic will gradually return to rationality, and the fundamental supply-demand and safe-haven attributes of silver remain intact.