- Silver prices have whipsawed this February sharply, driven by thin liquidity and heavy speculative positioning, leaving the market struggling to establish a clear floor.
- A multiyear precious-metals bull run accelerated in January on geopolitical risks, Fed concerns and speculative buying, especially in China, before abruptly reversing late last month.
- Silver suffered its biggest-ever daily drop on Jan. 30 and later fell more than 15% in a single session to a one-month low, while gold saw its steepest decline since 2013.
- Despite the selloff, silver remains up over 130% year-on-year, though it is now trading about 35% below its January record high of $121.64 an ounce.
- Analysts say price action is being driven more by speculative and CTA flows than physical fundamentals, with reduced liquidity amplifying swings and volatility likely to remain elevated.
Silver prices swung violently earlier this February before rebounding, as thin liquidity and heavy speculative positioning fueled extreme volatility in a market struggling to find a floor.
The turbulence comes after a multiyear bull run in precious metals accelerated sharply last January, driven by heightened geopolitical risks, concerns over the Federal Reserve’s independence and a surge in speculative buying, particularly in China.
Erb News Network 
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