Peter Smith
Silver prices took a significant hit on Thursday, with the precious metal (XAG) dropping by 3.52% to trade at $32.75 per troy ounce, according to the latest data from FXStreet.
XAG/USD Sees Sharp Decline After Recent Rally
Thursday's trading session proved challenging for silver (XAG) investors as the metal experienced a substantial pullback from the previous day's levels. According to FXStreet data, the XAG/USD pair fell from Wednesday's price of $33.94 to $32.75, marking a 3.52% decrease in just 24 hours.
This sharp decline comes amid a broader reassessment of precious metals valuations in current market conditions. Despite the day's losses, it's important to note that silver (XAG) has maintained an impressive performance trajectory since January.
Silver (XAG) Maintains Strong Year-to-Date Performance Despite Setback
While Thursday's drop represents a significant daily decline, the broader picture for silver (XAG) remains positive. Data indicates that silver prices have increased by 13.35% since the beginning of 2025, highlighting the metal's strong performance as an investment asset this year.
This double-digit growth demonstrates that despite short-term volatility, silver (XAG) has been delivering substantial returns for investors who maintained positions since the start of the year. The metal has benefited from various macroeconomic factors, including inflation concerns and industrial demand growth.
Gold/Silver Ratio Widens as XAG Underperforms
Thursday's price action also affected the closely-watched Gold/Silver ratio, which measures how many ounces of silver are required to purchase one ounce of gold. This key metric rose to 95.50 on Thursday, a notable increase from Wednesday's reading of 92.38.
The expanding ratio indicates that silver (XAG) is underperforming relative to gold in the current market environment. Typically, a rising Gold/Silver ratio suggests investors are favoring gold's stability over silver's growth potential, often reflecting heightened market uncertainty or risk aversion.
Market Implications for XAG/USD Trading
The sudden drop in silver (XAG) prices has significant implications for traders and investors in the precious metals space. Technical analysts are closely monitoring key support levels that may determine whether this represents a temporary correction or the beginning of a more prolonged downtrend.
For many market participants, the critical question remains whether silver (XAG) can maintain its impressive yearly gains despite this setback. Historical patterns suggest that silver often experiences higher volatility than gold, making short-term price swings like Thursday's drop not entirely unexpected.
Commodity experts point out that silver's dual nature as both a precious metal and an industrial commodity makes it particularly susceptible to shifts in economic outlook and manufacturing demand forecasts. The increased industrial applications for silver in sectors such as electronics, solar panels, and medical devices continue to provide underlying support for XAG prices.
As markets digest the latest price movements, traders will be looking ahead to upcoming economic data releases and central bank communications that could further influence the trajectory of silver (XAG) prices in the near term.
The current silver (XAG) price represents a significant test for market sentiment, with many analysts suggesting that price action in the coming days will be crucial in determining whether the metal can resume its upward trend or faces further consolidation ahead.
Peter Smith
