The silver market has finally shown signs of stability after a dramatic correction that wiped out nearly 9% in a single trading session — the steepest one-day fall in more than five years. On Tuesday, silver managed to stay above $71 per ounce, while gold hovered near $4,340, following a 4.4% decline in the previous session.

Despite the sharp drop, market experts maintain that both gold and silver are heading toward one of their most remarkable annual performances since 1979.

Analysts say that the recent rally in precious metals had been too steep and too fast. Here’s what triggered the sudden correction:

✔ Excessive price run-up driven by bullish sentiment
✔ Low market liquidity amplified volatility during year-end sessions
✔ Heavy profit-booking from traders near multi-year highs

Because of these factors, prices experienced a swift downward swing. However, the underlying sentiment remains supported by strong fundamentals.

Precious metals continue to receive strong backing from:

• Aggressive central bank buying worldwide
• Fresh inflows into gold and silver ETFs
• Multiple interest rate cuts by the U.S. Federal Reserve

Lower interest rates typically boost commodity demand, as non-yielding assets like gold and silver become more attractive when borrowing costs fall.

As of 7:15 AM (Singapore time):
• Spot Silver: Down 0.5% at $71.74/oz, after hitting a record $84.01 in the previous session
• Spot Gold: Slightly higher at $4,336.86/oz
• Platinum & Palladium: Continued their decline after Monday’s double-digit losses
• Bloomberg Dollar Spot Index: Remained nearly unchanged

Even after the steep correction, the rally in precious metals has not fully reversed, suggesting a potential recovery if investor sentiment strengthens again.

To identify fresh opportunities in the commodity market, Prithvi Finmart’s Manoj Kumar Jain has shared high-conviction trading recommendations:

📌 Natural Gas (MCX January Contract)
• Buy near: ₹352
• Target: ₹366
• Stop-Loss: ₹344

📌 Zinc (MCX January Contract)
• Buy near: ₹302
• Target: ₹308
• Stop-Loss: ₹298

Jain believes both commodities offer scope for short-term gains, supported by technical indicators and demand recovery.

Even with the recent correction, analysts believe that:

🔹 Volatility may remain high until market liquidity normalizes in early 2026
🔹 Silver’s long-term outlook is still optimistic due to industrial demand
🔹 The price range could remain wide, creating opportunities for active traders

Investors should remain cautious and avoid chasing sharp rallies, especially when fluctuation risk remains elevated.

The views and recommendations mentioned in this article belong to the respective market expert/brokerage. Readers are advised to consult certified financial professionals before making investment decisions.