Silver prices have retreated sharply, tumbling more than 50% from their record high of $121 per ounce.
The precipitous drop marks a significant reversal for the metal, often characterized by its volatile price swings, as it struggles to find footing amid a strengthening US dollar and shifting market dynamics.
Technical analysis suggests the metal may now enter a prolonged period of sideways consolidation.
This pattern mirrors historical movements observed in the Shanghai Composite index, indicating that silver is likely to trade within a defined range rather than resume its previous upward trajectory in the near term.
The sell-off is being exacerbated by fundamental headwinds in the industrial sector.
Analysts warn that the metal's aggressive rally in 2025 drove costs to levels that are now deterring demand from key industrial users.