Silver has entered a period of extreme volatility, marked by a rapid surge followed by sharp reversals. Prices accelerated from the high 90s to above 117 in a very short span as clustered stop losses from short sellers were triggered. Once those stops were cleared, aggressive options buying intensified the move, forcing dealers to hedge by buying silver-related instruments. This dynamic fueled a classic gamma squeeze. After peaking, silver quickly retreated toward the low 100s as the squeeze ran out of momentum, inviting short sellers back into the market. Renewed pressure has since led to another round of squeezes, keeping volatility elevated.
Speculation and unverified rumors are amplifying the frenzy, drawing momentum-driven traders into precious metals and mining assets, while more disciplined investors remain cautious. Outside commodities, equity markets showed resilience. Despite fresh tariff threats toward South Korea, investors dismissed the rhetoric and pushed Korean stocks to new highs, driven by enthusiasm around AI-related demand for semiconductor memory. This optimism spilled into U.S.-listed memory and storage names ahead of key earnings reports.
In the U.S., weakness in the Dow was largely attributable to a sharp decline in a major health insurer following disappointing earnings and regulatory pressure on Medicare Advantage pricing. Upcoming consumer confidence data could further influence market direction. Key names in focus include $SLV, $GLD, $MU, $WDC, and $UNH.
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