Silver Price Crash: White Metal falls 16% in a sharp reversal amidst extreme volatility

Silver prices in the spot market have seen a sharp reversal within a matter of minutes. The White Metal fell as much as 16% and has slipped below the mark of $75 an ounce.

The prices have reversed all the gains made in the last two trading sessions. Gold prices have also given up their gains, seeing selling pressure above the mark of $5,000 an ounce.

Price volatility is seeing extreme swings. Silver prices had seen a close above the $90 an ounce mark on Wednesday. After the initial fall, prices are now seeing sharp swings, now trading 12% lower.

Prices of Silver and other precious metals are reacting negatively to a resurgence seen in the US Dollar. The US Dollar index is now trading close to the mark of 98, having declined to four-year lows towards the end of January.

Precious Metals saw a sharp sell-off over the weekend and on Monday after the markets reacted to the nomination of Kevin Warsh as the new Fed Chair, dashing hopes of further monetary easing had Kevin Hassett become the chair. However, US President Donald Trump has reiterated that Warsh would not have become Fed Chair had he made the offer to raise interest rates.

A rising US Dollar is negative for commodities, as it makes it unattractive for foreign investors to buy them. Lower interest rates are also beneficial for them as they do not pay any interest on their investments.

This is breaking news. Will be updated with more details.