Silver steadies after sharpest sell-off in 5 years as metals head for best year since 1979

Silver has stabilized after experiencing its sharpest one-day drop in over five years, recovering to above $73 an ounce. This decline was a result of profit-taking following a robust year-end rally that rattled market sentiment. Meanwhile, gold prices have remained relatively steady despite recording significant falls over the past two months. The underlying trends are supported by sustained central bank buying, ETF inflows, and recent Fed rate cuts. Additionally, speculative demand from China has increased significantly, pushing premiums to record highs, signaling tightness in global supply chains. Analysts project continued volatility, particularly in silver, due to its tendency to exaggerate moves in gold, although the overall backdrop remains supportive as we approach 2026.