Silver prices are showing signs of recovery Wednesday morning in European trading, bouncing back toward $62.00 per troy ounce after plunging more than 5% in the previous session to touch six-month lows. The XAG/USD pair is currently trading around $61.70 as traders assess whether the sharp selloff has created a technical rebound opportunity or signals deeper weakness ahead.
The precious metal’s steep decline yesterday marks its worst single-day performance in months, reflecting broader risk-off sentiment and potentially stronger dollar dynamics pressuring commodity markets. The recovery attempt during European hours suggests some bargain hunting may be emerging at these depressed levels, though the sustainability of this bounce remains uncertain given the magnitude of Tuesday’s losses.
Traders in precious metals and commodity-linked currencies should monitor whether silver can reclaim the $62.00 level convincingly, as failure to do so could invite renewed selling pressure toward fresh lows.
FXnCO Insight
Watch for confirmation above $62.00 before establishing long positions, as the current bounce may prove temporary without sustained buying volume following yesterday’s brutal selloff.
Source: FXStreet