Silver price spike and plunge rattles markets as metal trades like crypto
Silver experienced intense, crypto-like volatility as prices surged to a new intraday record above $83 per ounce before sharply reversing into the mid-$70s within just a few hours. The dramatic move reflected fast-shifting market sentiment as traders reacted to speculation around potential U.S. rate cuts in 2026. With expectations building that looser monetary policy could boost precious metals, early buyers rushed in, driving the spike to historic levels.
However, the rally quickly lost steam as profit-taking set in and investors reassessed broader market conditions. Despite the pullback, optimism remains supported by strong industrial demand for silver especially from solar, electronics, and battery sectors—alongside tightening global supply. These combined forces continue to shape a highly reactive trading environment, leaving the metal vulnerable to sharp intraday swings.
Metals roar, then recoil
Spot silver briefly touched an all-time high near $83.62/oz before retreating to ~$75.47/oz, a drop of roughly 4–10% depending on the time window. Gold also eased after nearing records above $4,530/oz, staying elevated into year-end. Analysts cited profit-taking after a blistering 2025 rally and shifting geopolitical headlines.
Market reaction to silver price spike and plunge
The surge and reversal drew outsized attention across trading desks and social media. A syndicated post (via Cointelegraph/TradingView) described a +6% jump to ~$83.75 followed by a swift -10% drop to ~$75.15 in a little over an hour an unusually violent move for a precious metal, though not unprecedented for silver. TradingView
What caused the silver price spike and plunge?
Policy expectations
Markets increasingly price in U.S. rate cuts in 2026, supporting non-yielding assets.
Industrial pull
Silver’s use in solar, EVs, electronics, and data centers continues to expand.
Supply frictions
Reports of China export limits and thin inventories amplified moves.
Momentum & positioning
A year-to-date surge left traders prone to sharp profit-taking.
Crypto comparison
While silver and gold rallied on macro themes, Bitcoin traded around $89–90k Monday and was comparatively flat for December by crypto standards. The juxtaposition metals swinging while BTC consolidates reversed common 2020–2023 narratives.
Context & Analysis
Silver’s structural bid from electrification and solar, plus policy-driven safe-haven demand, has tightened balances. That mix can convert thin liquidity into outsized moves especially around futures opens and headline bursts. If 2026 cuts arrive and supply remains constrained, realized volatility could persist even as gold trends.
Bottom Lines
Silver’s weekend spike and rapid pullback highlight a market increasingly trading like a momentum-driven asset rather than a classic safe-haven hedge. The sharp moves reflect how quickly traders are reacting to shifting macro expectations, particularly around interest-rate paths and economic conditions heading into 2026. Such sensitivity has amplified intraday swings and drawn in short-term speculators.
At the same time, uncertainty around industrial demand trends and evolving supply constraints is adding another layer of instability. These mixed signals suggest that volatility could stay elevated into early 2026 as investors navigate conflicting forces and reassess silver’s role within the broader commodity landscape.
FAQs
Q : What triggered the silver price spike and plunge?
A : Rate-cut bets, industrial demand, supply concerns, and thin liquidity around futures open.
Q : Did silver actually set a record above $83?
A : Yes, Reuters reported an intraday high near $83.62 on Dec. 29 before prices fell.
Q : How did gold behave during the move?
A : Gold neared records above $4,500 before easing; it remained elevated into year-end.
Q : Is this volatility typical for silver?
A : Silver is historically more volatile than gold; large intraday swings occur during thin liquidity or headline shocks.
Q : Where did reports of a +6% surge and -10% dump originate?
A : A widely shared markets post summarized the intraday move, reflected by price action on major terminals.
Q : How did Bitcoin trade while metals swung?
A : BTC hovered around $89–90k and stayed relatively flat for December compared with metals’ surge.
Q : Is silver now moving like crypto long-term?
A : Not necessarily; long-term silver remains anchored by structural demand and supply, though short-term macro forces can trigger crypto-style bursts.
Facts
Event
Record intraday high in silver followed by rapid pullbackDate/Time
2025-12-29T20:00:00+05:00Entities
Silver (XAG), Gold (XAU), U.S. Federal Reserve, Chinese export authorities, CoinGecko (BTC reference)Figures
Silver high ~$83.6/oz; pullback to ~$75.5/oz; Gold near ~$4,530/oz; BTC ~$89–90k. The Economic Times+3Reuters+3The Economic Times+3Quotes
“Silver prices surged to a record high of $83.75… then fell to a low of $75.15.” Markets post highlighted via TradingView/Cointelegraph. TradingViewSources
Reuters, Guardian, TradingEconomics, CoinGecko (links below)