Silver prices continued to plunge as they fell to around $57 an ounce in Thursday's trading session, recording a drop of more than 52% from the all-time high recorded in January 2026.
The decline occurred following the strengthening of the US Dollar and the change in market expectations for the Federal Reserve's (Fed) monetary policy.
Market sentiment remained negative after the Fed signaled that interest rates are likely to remain high for longer.
These expectations strengthened the value of the US Dollar and increased government bond yields, thus reducing the appeal of precious metals such as silver that do not offer interest returns.
In addition to the interest rate factor, the fall in silver was also influenced by aggressive profit-taking activities after an extraordinary surge at the beginning of the year.
Increased margin requirements for futures trading and closing leveraged positions by investors accelerated selling pressure in the market.
Technically, silver is currently trading near a seven-month low after hitting a record high of around $121.64 an ounce in January.
The psychological level of $60 is now a key area to watch, while further support is seen near US$55 if selling pressure continues.
Investors' attention now turns to US Personal Consumption Expenditures (PCE) data due later today.
Any signs that inflation is easing could reduce pressure on the Fed to continue raising interest rates, giving silver a chance to rebound.
