Silver experienced its worst intraday decline since 1980, creating a market selloff last Friday. Silver futures plummeted 31.4% to $78.53/oz, while spot silver dropped 27.1% to $84.70. This stunning drop followed a significant rally in precious metals, with silver up 140% in 2025. The nomination of Kevin Warsh as the next Federal Reserve Chair was a key trigger.

The decline was fueled by several factors, including China halting trading in commodity funds and Warsh's hawkish stance, which strengthened the dollar. That, in turn, put pressure on precious metals. Analysts at BMO Capital Markets noted the sell-off as one of the steepest intra-day corrections. Investors had been flocking to safe-haven assets due to trade wars and geopolitical concerns.

Silver prices rebounded on Tuesday, suggesting a mid-cycle correction rather than a market crash. However, market analysts advise caution due to volatility. David Morrison of Trade Nation pointed out the rapid price swings, warning of potential risks for traders. The recent volatility underscores the need for careful risk management in these markets.

Following the sharp drop, the silver market is now trying to regain its footing. Investors are watching to see if the rebound can be sustained. The future direction of the precious metals market will depend on several factors, including interest rate decisions and geopolitical events. Further, China's actions on commodities will continue to have impacts.