CITIC Futures: Silver continues to exhibit high volatility, and structural tension remains.

Silver is more sensitive to interest rates and the US dollar. After the release of strong employment data, volatility increased, with daily fluctuations significantly higher than gold. Since reaching a historical high on January 29, silver has fallen by about 30%, with a more intense correction process, indicating that its market capacity is small and liquidity is low, leading to amplified elasticity. From a supply and demand perspective, the silver market is expected to remain in a supply deficit for the sixth consecutive year, with investment demand still being a key variable. The Chinese market’s inventory remains tight and has not fully eased. Exchanges have strengthened management of delivery processes, which may temporarily suppress some speculative short squeezes. Overall, silver is caught between the pressure on its financial attributes and structural tightness in supply. Its price path depends more on macroeconomic direction confirmation. Once real interest rates decline again, silver prices may exhibit renewed elasticity. (CITIC Futures)