Silver drops to $52.81 as precious metals sell-off accelerates

Retreating with a 2.82% loss to the $52.81 level, silver and, falling to the $4,011.40 mark, ounce gold faced a wave of selling under pressure from geopolitical risks and cash needs. In silver, which moved within the $52.71 to $54.29 band during the day, following the previous session's close at the $54.34 level, the critical $54 threshold was broken. On the gold front, following the previous day's close of $4,038.40, intraday trading took place in the range of $4,009.60 to $4,038.90, and the daily loss was 0.67%.

Which critical levels are being watched in precious metals?

Is Yatirim Deputy General Manager Sant Manukyan drew attention to critical technical thresholds in precious metals. Stating that selling could accelerate if ounce gold dips below the 3 thousand 950 dollars level and the $54 support in silver is broken, Manukyan shared that the market has entered a period where reading short-term pricing has become difficult. While the need for dollar liquidity, increased by the climb in oil, triggered gold sales, bond yields rising immediately afterward pressured precious metals. While it was rumored that funds were selling gold to cover losses in equity markets, the decline in gold prices did not halt even on days when stocks recovered and yields retreated.

Where will oil and geopolitical risks head?

Geopolitical tensions also remain hot on the commodity desk. In a period where oil prices hold above $100 and the $117 level was seen last week, the elections to be held in Israel ahead of the November 3 elections in the US come to the fore. Reports that the Chief of General Staff opposed Prime Minister Benjamin Netanyahu's desire for a military operation were reflected in the market. Although oil shipments in the Gulf region continue under the protection of the US Navy, tanker shipping and insurance costs remain high. While a potential compromise could suddenly melt the risk premium, hot developments leave the door open to sudden price spikes.

Oil hovering above $100 and the rigidity in shipping costs directly reflect on Turkey's markets through the energy bill and the current account balance channel. Stating that the dynamics of the year 2025 remain intact despite the recent easing in precious metals, Manukyan pointed out that the divergence between economies continues and said that investors should take unleveraged positions.

This content is for information purposes only and does not constitute investment advice.