investingLive Asia-Pacific FX news wrap: Record high for silver then wild swing lower

Silver witnessed volatility by surging to a record high above $83 before sharply falling below $75. Elon Musk's warning about rising silver prices, which are critical for industrial applications like electric vehicles, emphasized the fears surrounding the metal's supply and demand dynamics. China's economic data also contributed to the narrative, with a significant slump in industrial profits highlighting persistent deflationary pressures. The Chinese government's commitment to a more proactive fiscal policy for 2026 aims to boost consumption and support innovation, fostering a growth target of around 5%. Additionally, the USD/JPY currency pair showed fluctuations, initially dipping below 156.10 before recovering above 156.50, influenced by the Bank of Japan's ongoing monetary policy stance, which suggests further rate hikes. Geopolitical risks persist, with the situation in Ukraine showing some progress in peace talks, yet issues remain unresolved. The implications for silver prices are noteworthy, as they remain sensitive to both industrial demand and geopolitical tensions ahead.