Overnight Sell-Off Drives Silver to $32.25 Before Modest Recovery

According to Reuters and Trading Economics, silver stood at $32.405 per ounce at 07:03 UTC on May 8 after an overnight slide to $32.25.

Traders pushed prices lower during Asian hours under dollar strength and light volumes. Then silver found shallow support and rebounded toward the 50-hour EMA near $32.60.

Wednesday’s Federal Reserve decision to hold rates steady spurred initial silver gains to $32.86. Chair Jerome Powell warned that inflation and employment risks remain elevated.

Markets responded by buying safe havens, but the dollar’s rebound later undercut silver’s early advance. Traders sold aggressively in late Asian trade and early European hours.

They cited profit-taking ahead of Thursday’s US CPI release and weekend US–China talks. Consequently, silver pierced the lower Bollinger Band before technicians noted oversold RSI near 30.

London’s PM silver fix settled at $33.03, while COMEX July futures traded near $33.32. COMEX volume rose, but open interest contracted as short positions covered.

Silver Market Update

In India, MCX silver futures opened at ₹96,166 per kilogram, peaked at ₹96,315, then fell back to ₹95,855 amid rupee-dollar swings. Silver ETFs added 505,890 troy ounces on Wednesday, yet overnight inflows slowed to roughly 100,000 ounces amid the sell-off.

These flows lifted year-to-date net purchases to 17 million ounces. Analysts view ETF interest as a barometer of investor conviction. Technically, silver broke below the 200-hour SMA and 50-hour EMA before the rebound.

The MACD on the 1-hour chart formed a bearish crossover, while the RSI touched 28. Bulls then drove prices back above the 50-hour EMA. The metal remains confined by the upper Bollinger Band near $33.20 and lower band at $32.00.

Fibonacci retracement levels from April’s high reinforce support at $32.00 and resistance at $33.40. Ongoing deficits in primary silver mine output underpin long-term supply concerns.

Meanwhile, strong photovoltaic demand sustains industrial off-take. Central banks continue gold buying, keeping the gold-silver ratio near 102.5 and capping silver’s relative gains.

Abhilash Koikkara of Nuvama notes silver’s resilience after its 38.2 percent retracement bounce near $32.00. He expects a retest of $33.40, with dips offering fresh entry points. Traders now eye breakouts above the 200-hour SMA for confirmation.

Investors await Thursday’s US CPI at 13:30 UTC and May Fed minutes. They also monitor US-China trade negotiations. Those catalysts may drive silver’s next directional move.

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