Silver falls 8% | Al Watan newspaper

Silver prices recorded a sharp decline of about 8 percent in the last session, falling below the $50 level to $48.1, recording their largest loss in one day since last April.

This strong correction in the market comes after a period that witnessed a rise driven by the phenomenon known as “FOMO” (fear of missing out) among individual investors, a phenomenon that seasoned investors in the market usually see as an opposite sign of a price reversal.

This sudden decline in silver was the result of a combination of several decisive factors, even though the fundamental fundamentals of the market remain strong:

*US political risks recede: News emerged indicating the possibility of reaching a deal between Republicans and Democrats this week, paving the way for the resumption of US government operations. This development contributed to removing a layer of geopolitical risks that were supporting precious metal prices.

*Optimism in trade between America and China: US President Donald Trump announced that the trade agreement with China would be “wonderful,” and that he plans to meet Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit later this month, which fueled trade optimism.

* Crucial technical indicator: The price recorded a technical breach of the accelerating upward trend line, which is a technical indicator that prompted the selling wave.