The precious metals are currently experiencing intense volatility, with gold and silver prices transforming under the new geopolitical tensions. The price of gold has now drifted further below, sitting at $4100 at press time, while the silver price has crashed below $62, eyeing $60 as its next stable price point. Will this geopolitical turmoil push silver to encounter further lows? Does the metal have any chance to bounce back to its glory days? Let’s explore it in depth.

Also Read: Why Gold Prices Are Dropping Fast And What Comes Next

Silver Price Hits a New Bottom

The precious metals have now started to slow down, with the silver price hitting a new rock bottom at press time. Silver prices have dropped below $62 in a new staggering development, eyeing $60 as its new breaking point. The price of silver is now down 50% from its all-time high, sitting at $61 at press time. This combination crash has resulted in wiping nearly $13.5T out of global markets, as rapid oil spikes triggered a rising fear of inflation, proving negative for the precious metals in totality.

Silver prices have been dwindling at present, hinting at crossing the $60 price support. Per Rashad Hajiyev, silver is currently testing its lowest limits; however, the metals may soon regain their support, as Hajiyev believes the worst is “over.”

Hajiyev later shared how the second wave of silver decline has resulted in wiping out the majority of the silver longs. His latest forecast includes the metal forming a double bottom, which could catapult its price to $260 in the near future.

“I think most of the longs have been wiped out after the second wave of decline in silver. Silver could be forming a double bottom. And a reversal could be forming towards the end of March. With a rally potentially starting in April and lasting into late summer to my $240 – $260 target…”

The Next 25 Hours Are Crucial For Metals

The US-Iran War is now taking a new shape, as the US has threatened Iran, warning that it will obliterate Iranian power plants if the country refuses to lift the ban on the Strait of Hormuz. Iran has also retaliated in response to this, sending a direct warning to the US, stating that it will counterattack and will harm the US IT and desalination plants.

This has triggered a global market mayhem, with investors scurrying towards the US dollar for refuge. Fears regarding the inflation are now gripping the US economy, with the investors supporting USD as their best bet, withdrawing away from safe havens like gold and silver.

“With the Iranian conflict into its fourth week. And oil prices hanging around the $100 level, expectations have shifted from rate cuts to potential rate hikes. Which has hurt gold’s appeal. Steep sell-offs in Asian stock markets are leading to the unwinding of long positions in gold.” Tim Waterer, Chief Market Analyst at KCM Trade, told Reuters

Also Read: Legal Expert Says Buy More XRP at the Right Price as Metrics Surge