Old Cat Gold Digging: Silver Takes a Nosedive from High Platform, Short-Term Volatility Intensifies

Today's spot silver market experienced severe fluctuations, opening higher at 78.199 USD in early trading and once surging to a daily high of 79.007 USD, but subsequently encountered concentrated selling by bears, with prices rapidly retreating and touching a low of 75.480 USD. Finally, prices stabilized around 76.202 USD, down 1.967 USD from yesterday's close, representing a decline of 2.52%.

From a news perspective, recent market focus has concentrated on the resonance of multiple bearish factors. The Bloomberg Commodity Index's annual weight rebalancing is underway, forcing funds to passively reduce large positions in gold and silver. Due to the relatively weaker liquidity in the silver market, this large-scale selloff has had a disproportionate impact on its price. Meanwhile, domestic exchanges have also raised the margin ratio for silver trading, which directly triggered a wave of longs closing positions, further exacerbating downward pressure on prices. Additionally, market concerns about the photovoltaic industry's "silver-free" technology continue to weigh on silver's industrial demand outlook.

From a technical perspective, silver prices encountered strong resistance after reaching the 79 USD round figure, and the subsequent sharp decline broke through the 78 USD support level, finding short-term support near 75.5 USD. Currently, prices are fluctuating around the 76 USD level, and the short-term moving average system has formed a bearish arrangement, indicating weak short-term trends. However, it should be noted that current prices have deviated significantly from moving averages, creating demand for technical rebound.

Considering multiple factors comprehensively, short-term market sentiment remains cautious. We suggest investors temporarily observe and wait for market sentiment to stabilize. Aggressive traders can pay attention to range-bound high selling and low buying opportunities, with resistance levels at 77-77.5 USD and 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 fall below 75.5 USD support, beware of further downside risks.

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