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

The spot silver market today experienced violent fluctuations, opening higher at 78.199 USD in early trading and surging to an intraday high of 79.007 USD, but subsequently encountered concentrated selling by bears, with prices rapidly declining to a low of 75.480 USD. Finally stabilizing around 76.202 USD, down 1.967 USD from yesterday's close, representing a decline of 2.52%.

On the news front, recent market focus has concentrated on the resonance of multiple bearish factors. The Bloomberg Commodity Index's annual weighting adjustment is underway, forcing funds to passively reduce their holdings of gold and silver positions. Due to the relatively weak liquidity in the silver market, this large-scale selloff has had a disproportionate impact on its price. Meanwhile, domestic exchanges have also raised margin requirements for silver trading, which directly triggered a wave of long position liquidations, further exacerbating downward price pressure. Additionally, market concerns about the photovoltaic industry's "silver reduction" 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 near 75.5 USD. Currently, prices are fluctuating around the 76 USD level, and the short-term moving average system has formed a bearish alignment, indicating weak short-term trends. However, it should be noted that current prices have deviated significantly from the moving averages, indicating demand for a technical rebound.

Considering all factors comprehensively, short-term market sentiment remains cautious. It is recommended that investors remain watchful for now and wait for market sentiment to stabilize. Aggressive traders can pay attention to range-bound high-sell low-buy opportunities, with resistance levels to watch at 77-77.5 USD above and support levels at 75.5-76 USD below. If prices can effectively break through 77.5 USD, they may retest the 79 USD high; if they fall below the 75.5 USD support, further downside risks should be monitored.

Disclaimer: This article is merely a personal viewpoint 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.