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Silver Plunges Again as Precious-Metals Turmoil Returns and Banks Raise Gold Outlooks

Fresh losses follow a brief rebound as traders confront dollar swings, thin liquidity and shifting rate expectations.

Overview

  • Spot silver sank about 13%–16% on Thursday to roughly $77 an ounce after a two‑day bounce, while spot gold fell 2%–3.5% to near $4,860 in renewed volatile trade.
  • Analysts cited leveraged positioning, dealer hedging flips, margin‑driven deleveraging and tight London inventories as key forces magnifying silver’s moves, with Goldman Sachs flagging options‑driven cascades.
  • Longer‑term views stayed constructive: J.P. Morgan now projects gold at $6,300 by end‑2026, a Reuters poll puts the 2026 median at $4,746.50, and UBS sees $6,200 by mid‑2026 after near‑term consolidation.
  • Geopolitics and policy headlines continue to jolt pricing, with USIran tensions and Kevin Warsh’s Fed nomination shaping safe‑haven demand and interest‑rate expectations.
  • India’s bullion markets mirrored the turbulence, with Delhi spot prices surging on Wednesday and MCX futures swinging sharply before sliding again on Thursday, underscoring fragile liquidity and positioning.