Silver drops sharply, erasing two days of gains amid market rotation

Businessinsider reports that silver slid, giving back a brief rebound after last week's record highs and sharp selloff. The spot silver price was 9.2% lower around $80.05 per troy ounce at 2:27 a.m. ET, after dropping as much as 17% earlier in the session. Thursday's slide erased two days of gains for the white metal, which had plunged as much as 36% on Friday at the height of the selloff.

Gold also retreated, slipping below the $5,000 level to trade around $4,934 per ounce as the US Dollar Index rose to a two-week high. Ewa Manthey of ING wrote, "The inverse relationship between precious metals and the US dollar has reasserted itself, leaving gold and silver particularly sensitive to near-term FX moves." Analysts warned silver is likely to remain especially volatile and noted hedge funds had trimmed long positions, reallocating into energy and other commodities.

The move came amid a broader market rotation, with tech stocks and cryptocurrencies under pressure.

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