Silver extended its retreat from an all-time high earlier in the week, as traders took profits from a rally that had become overheated. Gold also slipped.
The white metal fell below $57 an ounce, having lost more than 2 per cent in the previous session to snap an eight-day winning streak.
The latest pullback has moved silver out of overbought territory after its rapid advance to nearly $59 on Wednesday. Viewed through the 14-day relative strength index, bullion dipped back below the threshold of 70 that signals momentum has gone too far, too fast.
Silver has roughly doubled in value this year, a rally that has accelerated in the last two months due to a historic squeeze in London.
While that crunch has eased in recent weeks as more metal was shipped to the world’s biggest silver trading hub, other markets are now seeing supply constraints. Chinese inventories are near their lowest in a decade.
The metal’s recent surge has also been supported by rising expectations the US Federal Reserve will lower interest rates at its meeting next week.
Swap contracts indicate a near-certainty the Fed will reduce the cost of borrowing – a benefit for non-yielding precious metals. These bets withstood the latest US employment data, which showed jobless claims fell to a three-year low.
Silver dropped 0.4 per cent to $56.8850 an ounce as of 9:20 a.m. Singapore time. Gold fell 0.3 per cent to $4,197.11, while platinum and palladium also declined. The Bloomberg Dollar Spot Index was flat after rising 0.1 per cent in the previous session.
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Published on December 5, 2025
