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Silver's Wild Ride: Doubled, Crashed, Now What?
16 Feb
Summary
- Silver prices dramatically doubled, then lost 46% in just three sessions.
- A parabolic upmove was fueled by shortage rumors and depleted storage.
- Current consolidation suggests limited moves ahead for silver futures.
Silver futures have recently undergone a period of extreme volatility, surprising traders worldwide. The metal experienced a parabolic surge, doubling its value from approximately Rs 1.4 lacs to Rs 2.8 lacs on the MCX. This dramatic rise was attributed to widespread reports of global silver shortages and dwindling storage supplies.
However, this sharp ascent was swiftly followed by a significant correction. Within a mere three sessions, silver prices plummeted by approximately 46% from their recent highs. This rapid decline led to the unwinding of many positions, and the metal has since been in a corrective phase characterized by consolidation.
