Silver Price Plunges 50%, Enters Prolonged Sideways Move

The silver price has plummeted over 50% from its record high of $121 per ounce, currently trading at around $58 per ounce. This sudden reversal is largely attributed to a surge in the US dollar index, which has strengthened from 95.5 in January to 101.45 now.

A study on the Shanghai Composite index reveals that silver may run into a prolonged sideways move, similar to the index's movement between 2016 and 2024. If this trend sustains, it suggests that the upside in silver can be capped at $70, with a wide range of $40-70 expected going forward.

The recent price movement shows that gold has room for a fall to $3,800-$3,750, while its ratio with silver can rise to 76-78 in the coming months. This implies an average price of $56 for silver, indicating that prices may remain subdued.