Silver prices plummet as investors compete to make a profit after a series of hot increases

World silver prices fell more than 6%, marking the strongest decline in the past 6 months, as the precious metals group simultaneously adjusted after a series of hot increases throughout this week.

According to Bloomberg, this decrease comes as the market is less concerned about credit risks in the US and US-China trade tensions show signs of cooling down. As demand for safe-haven assets such as gold and silver eases, investors are starting to take profits after a period of strong price increases.

In addition, the historic scarcity in the London silver market - a factor that once caused silver prices to escalate - is also gradually improving.

Ms. Nicky Shiels - Director of Metals Strategy of MKS Pamp SA - commented: "The situation of silver shortages in London has somewhat eased after reaching the extreme stress level. As regional fluctuations become more stable, pressure to adjust prices and profit-taking activities may continue to appear."

The correction in silver also coincides with a recovery in US Treasury yields, as concerns about the financial health of regional banks and lending activities ease, according to Bloomberg. This development has caused safe-haven capital to withdraw from precious metals, contributing to reducing demand for gold and silver.

Overseas markets are now seeing the USD index continue to weaken. The USD index is having its biggest week of decline in two months. The greenback fell for the fourth consecutive session, due to the "unmatched" signal from the Federal Reserve (FED) and new concerns about US regional banks.

The yield on the two-year US Treasury note fell to a three-year low, while the 10-year yield fell below 4%.

Oil prices decreased slightly to about 57.25 USD/barrel, the 10-year bond yield was 3.94%.

As of 8:50 a.m. on October 18, the world silver price was listed at 54.14 USD/ounce, down 3.03 USD compared to yesterday morning.