Global Markets Diverge as Silver Plunges From Record High While European Equities Hit New Peaks
Global markets saw mixed results on December 30 as silver plunged 8.7 percent from record highs. European stocks reached new peaks while U.S. markets retreated.
Insights:
Silver reached a record of approximately $84 per ounce before declining 8.7 percent in the largest one-day fall since August 2020. On December 30, 2024, Silverbounced 2.5 percent to $74.1 per ounce. Tony Sycamore, an analyst at IG in Sydney, attributed the initial Silvergap higher to factors including stop losses, price action, panic buying, and margin requirement increases by the Chicago Mercantile Exchange. Silverremains on track for an annual gain of 156 percent.
Gold also experienced extreme volatility, tumbling 4.4 percent overnight before gaining 0.7 percent to reach $4,361 per ounce on December 30, 2024. Copper declined alongside precious metals as the Chicago Mercantile Exchange raised margin requirements, putting pressure on the sector during a period of thin liquidity in a holiday-shortened week. The Federal Reserve's December meeting minutes are expected to showcase a divided central bank unsure of its policy path next year, though prospects of more rate cuts have previously helped support Goldand Treasuries.
