ING: Silver rebounds strongly after historic sell-off, market liquidity remains tight, amplifying volatility

After a historic sell-off, silver prices continued the rebound from the previous trading day, with New York futures hovering around $90 per ounce. An analyst at ING Bank stated, “In a high-volatility environment, after a sharp decline from record highs, precious metals have once again attracted buying interest.” The pullback in silver prices was significantly larger than gold, due to persistently tight liquidity in the London market, which amplified price fluctuations in both directions. Goldman Sachs warned that low inventory levels have created a market environment similar to a squeeze; as investor demand absorbs existing metal supplies, the rally accelerates, but once supply pressures ease, prices can quickly reverse.