The post Silver price plunges after record highs as profit-taking takes hold appeared on BitcoinEthereumNews.com.

Silver (XAG/USD) is retreating sharply and trades around $109.40 on Thursday at the time of writing, posting a 6.50% decline on the day, after reaching a fresh all-time high at $121.66. Following a strong rally driven by safe-haven demand, the Silver market is taking a breather as investors lock in profits amid heightened volatility. Demand for precious metals remains underpinned by geopolitical tensions. US President Donald Trump has urged Iran to resume nuclear talks, warning that any future US strike would be far more severe. In response, Tehran has threatened retaliation against the United States (US), Israel and their allies, keeping uncertainty elevated and supporting safe-haven assets such as Silver. According to Reuters, Marex analyst Edward Meir notes that rising US debt levels and the gradual fragmentation of the global trade system into regional blocs are encouraging investors to reduce exposure to a US-centric model and increase allocations to precious metals. This structural shift continues to support longer-term Silver demand despite short-term corrections. Concerns over the independence of the US Federal Reserve (Fed) are also weighing on sentiment. The Trump administration is pursuing a criminal investigation into Fed Chair Jerome Powell and considering changes within the institution, increasing uncertainty around the future credibility of US monetary policy. Against this backdrop, the US Dollar (USD) struggles to regain sustained momentum, reinforcing Silver’s appeal as a hedge against currency risks. On the macroeconomic front, the Fed keeps interest rates unchanged in the 3.50%-3.75% range while acknowledging that inflation remains elevated and economic uncertainty is still high. Recent labor market data point to ongoing resilience, but stabilizing unemployment and moderating job gains support a cautious stance from the central bank. According to Commerzbank, the Fed is in no rush to deliver further rate cuts unless economic indicators deteriorate meaningfully. Overall, the current pullback…

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Filed under: News - @ January 29, 2026 5:25 pm