Silver Loses $80, Plunges 12% Intraday; Gold Dives $100 in Short Term; Has Safe-Haven Rally Ended?

TradingKey - During Tuesday's U.S. pre-market session (as of 6:40 a.m. ET), spot silver prices dropped below $80 per ounce at one point, hitting a low of $77.9625, the lowest level since February 20. The intraday decline reached as much as 12%, and it is currently trading at $80.4 per ounce.

Gold also trended lower, diving nearly $100 in short-term trading. It broke through the $5,200 and $5,100 thresholds in quick succession, hitting a low of $5,076. The intraday decline once exceeded 4%, and it is now trading at $5,133.

On March 2, gold and silver experienced a brief surge, with gold touching the $5,400 mark and silver breaking above $90, but a flash crash ensued shortly thereafter.

Analysts believe the primary catalyst for the earlier surge in gold and silver prices was the geopolitical uncertainty stemming from the U.S.-Iran conflict. However, robust U.S. economic and employment data have strengthened expectations that the Federal Reserve will not cut rates in the near term, resulting in a tug-of-war between bullish and bearish factors. Furthermore, the market has partially priced in the expectation that the U.S.-Iran conflict will not be resolved in the short term; with the bullish news exhausted, the momentum for a continued rally in gold and silver has weakened.