Drops back into the $73 range again after four trading days

Liquidity is decreasing and investor sentiment is worsening, repeating a vicious cycle

"If the $70 support level breaks, it will be dangerous"

After posting the largest single-day drop on record last week, silver prices fell by about 17% at one point during intraday trading on the 5th.

According to Bloomberg, as of 1:44 p.m. on the 5th (Korea time), spot silver was trading at 77.01 dollars, down 12.65% from the previous session. Around 12:00 p.m. that day, the price had plunged by about 17%, slipping into the 73?dollar range, but it then rebounded slightly on the back of bargain hunting.

This decline came just four trading days after the drop on the 30th. After that, silver prices remained weak for two days through the 2nd, then attempted a rebound on the 3rd and 4th, supported by bargain hunting.

Christopher Wong, a strategist at OCBC Bank, told Bloomberg that "Investor sentiment appears to have weakened across asset classes, including equities and metals," adding, "In a situation where liquidity is limited, a vicious feedback loop that amplifies the decline is repeating itself."

Mark Cranfield, a strategist at Bloomberg Markets Live, said, "Traders will be watching the recent low just above 71 dollars this week, but the more important level is 70 dollars," noting, "Silver has not traded in the 60?dollar range since December last year, and if it falls below that, it will trigger risk?off sentiment toward assets across the board."

Meanwhile, at the same time, spot gold was down 1.63%, and spot palladium was also down 2.39%.