The silver price fell sharply as investors locked in gains after President Trump nominated Kevin Warsh to lead the Federal Reserve, a move that eased concerns about central bank independence and pushed the dollar higher, according to Investopedia and Reuters reporting.
Investopedia reported that silver slid more than 25 percent to trade below $87 an ounce, citing a decline to $86.60. Reuters recorded steeper intraday moves, saying spot silver fell about 28 percent to $83.45 per ounce, while silver futures plunged 31.4 percent to settle at $78.53.
A separate market update showed silver exchanging hands at $99.04 per ounce at 8:30 a.m. Eastern Time, which represented a $20.43 drop from 24 hours earlier and more than a $67 gain versus the prior year, and it listed a previous close at $119.47, a 20.62 percent decline from that level.
Reports tied the abrupt selling to profit-taking after a prolonged rally, and they said the nomination helped spark a dollar rebound that made dollar-priced metals more expensive for foreign buyers, weighing on demand.
Market Impact And Reactions
Traders unwound crowded positions and margin calls intensified losses, Reuters and Investopedia said, with exchange traded funds and miners bearing heavy losses. Reuters noted the iShares Silver Trust fell sharply and that leveraged funds such as ProShares Ultra Silver plunged substantially, while Investopedia reported broad ETF declines for silver and gold funds.
Market participants and analysts described the move as a rapid reassessment. Jeff deGraaf of Renaissance Macro Research warned that parabolic moves have hair triggers, Reuters quoted him as saying. Reuters also cited Evercore ISI's Krishna Guha, who described the market as trading a more hawkish view of the Fed after Warsh emerged as a front-runner.
CNBC commentary included observations from FX strategists and wealth managers that said geopolitical tensions had helped metals rally, but that crowded positioning and reduced central bank buying had left prices vulnerable. Reuters and Investopedia reported that miners and related stocks suffered notable losses amid the selloff.
