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Silver Tops $80 for First Time Before Sharp Reversal in Thin Year-End Trade

Tight supply, Fed-cut hopes plus a margin hike produced a surge that quickly flipped to profit-taking.

Overview

  • Spot silver spiked to roughly $84 an ounce early Monday before dropping more than 5% as the record-setting run gave way to volatile retracement, according to market data and Reuters.
  • In India, MCX March futures hit an all-time high of Rs 2,54,174 per kg, then sank by about Rs 21,000 within an hour at one point as traders rushed to lock in gains.
  • Analysts cited thin holiday liquidity, profit-taking and reports of higher CME margin requirements as immediate drivers of the pullback, with safe-haven demand easing after comments on progress in TrumpZelenskiy talks.
  • The broader bull case remains anchored in tight inventories, strong industrial demand from solar, EVs and electronics, ETF and central-bank buying, a weaker dollar and expectations of further Fed easing into 2026.
  • Policy factors stayed in focus, including China’s move to require export licences for silver from January 1, 2026 and a U.S. critical-minerals review that could affect trade flows and availability.