Silver prices have dropped below $62, a 50% decline from their all-time high, with the metal now testing the $60 support level. This plunge is part of a broader metals crash that, alongside gold’s drop below $4,200, has erased approximately $13.5 trillion from global markets in 53 days. Analyst Rashad Hajiyev suggests the worst may be over, forecasting a potential double bottom and a rally toward $240-$260. Geopolitical tensions, including the US-Iran conflict and rising oil prices, have driven investors toward the US dollar, pressuring traditional safe havens.
Precious metals are experiencing intense volatility, with silver prices crashing below $62 and eyeing $60 as a new support. The price of silver is down 50% from its record high, sitting at $61 at press time.
This metals crash has wiped nearly $13.5 trillion from global markets, as reported by Bull Theory on Twitter. Rapid oil spikes have triggered inflation fears, proving negative for precious metals overall.
Analyst Rashad Hajiyev stated silver is testing its lowest limits but believes the worst is “over.” He later shared his forecast on Twitter, suggesting a double bottom could form with a reversal by March’s end.
Hajiyev’s target for silver is $240 to $260, with a rally potentially starting in April. He noted that most long positions have been wiped out after the metal’s second wave of decline.
Geopolitical turmoil is a key driver, as the US has threatened Iran over the Strait of Hormuz, as detailed in a New York Times report. Iran has retaliated with warnings to counterattack US infrastructure.
This has triggered global market mayhem, with investors scurrying toward the US dollar for refuge. Tim Waterer, Chief Market Analyst at KCM Trade, explained the shift in expectations to Reuters.
“With the Iranian conflict into its fourth week. And oil prices hanging around the $100 level, expectations have shifted from rate cuts to potential rate hikes. Which has hurt gold’s appeal. Steep sell-offs in Asian stock markets are leading to the unwinding of long positions in gold.” he stated. The next 25 hours are seen as crucial for metals markets.
