02.02.202615:52:40UTC+00Silver Extends Selloff on Monday

Silver managed to recover from some of its earlier declines on Monday but remained approximately 8% lower, trading at $78 per ounce. Last week's selloff, driven by profit-taking in precious metals, extended into the new week. The price of silver dipped to a low of $77 during the Asian trading session, following a dramatic 26% decline on Friday — the largest single-day drop on record, which almost negated its gains for the year. The white metal had previously soared to a record high of over $120 on Thursday. This sharp reversal was triggered by news that U.S. President Donald Trump is expected to nominate Kevin Warsh as the next chair of the Federal Reserve, a move interpreted by many as an indication of a stricter monetary policy approach. Despite the recent downturn, silver continues to receive some fundamental support due to a structural market deficit and the so-called "debasement trade." This trend reflects investors gravitating towards physical assets and away from currencies and bonds, in response to mounting concerns about increasing government debt, geopolitical and economic uncertainties, and ongoing apprehensions regarding the Federal Reserve's independence.