OCBC strategist Christopher Wong notes that Silver dropped around 9% to below US$76/oz, extending a sharper correction than Gold. He links the earlier Silver rally to Trump–Xi positioning, firmer industrial metals and AI-led equity gains, but says that higher yields and a stronger Dollar have reversed support. Wong now highlights fragile sentiment, downside risks and key support and resistance levels for Silver.

Silver sentiment turns fragile near supports

"Overnight, gold fell nearly 2.5% toward the US$4,500/oz area, while silver slumped around 9% to below US$76/oz at one point. "

"Silver’s sharper decline was in line with our caution last week. Its earlier rally had been helped by a mix of Trump–Xi pre-positioning, firmer industrial metals and spillover from the AI-led equity rally, where gains in risk assets had been led by AI-related names. That AI link was not a direct demand story, but a broader risk-appetite channel — silver benefited as a higher-beta, industrially geared precious metal."

"When yields and the USD moved higher, that support quickly reversed. India’s silver import curbs are also likely to tighten supply and lift domestic premium but also raises questions about near-term demand."

"Overall, the tone remains fragile unless yields stabilise or oil/geopolitical risks stop feeding into a more hawkish rates repricing. More constructive steps towards the reopening of the Strait of Hormuz may help to provide support."

"Silver last seen at 76 levels. Bullish momentum on daily chart faded while RSI fell. Risks skewed towards the downside. Support at 74.60 (61.8% fibo retracement of Oct low to 2026 high), 70 and 65 levels (200 DMA). Resistance at 83.60 (50% fibo), 90 levels."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)