Silver Drops 3.24% in Shanghai as Precious Metals Face Fresh Selling

Silver was broadly down, and platinum had fresh technical weakness in precious metals in Shanghai. Silver and gold, palladium and platinum also ended the session down, with silver finishing at $83.73, according to SilverTrade.

Traders are now focused on whether the sell-off will resume or if buyers will be able to provide support at key levels after the recent big pullback.

Silver Leads Shanghai Metals Selloff

The major metals listed in the daily report of China SGE/SHFE made the biggest declines, with silver seeing the sharpest drop. The report revealed that silver on SHFE closed at 18,251 yuan per kilogram, a 3.24% decrease, and that the converted dollar price stood close to USD 83.73 per ounce.

According to the analyst’s X post, the weakening of silver was the highlight of the day’s metals weakness. Gold on SHFE also fell, closing at 983.56 yuan per gram, down 1.58%, or about $4,512.10 per ounce. SGE gold also moved lower, with Au(T+D) closing at 981.95 yuan, down 1.22%, or around $4,504.72.

Silver on SGE settled at 18,202 yuan per kilogram, 2.49% lower and around $83.50. This indicated that the market was selling as much as it was selling SHFE futures.

The weak signal was the inventory data. The silver vault stock of SHFE increased by 4,520 kg to 993,726 kg, which is equivalent to approximately 31.95 million ounces. The weekly gain of SGE silver vaults was also +91,305 kg (+91,305 kg) for the week ending 22 May.

Platinum Chart Weakens Further

Platinum also ended down in Shanghai, dropping 2.20% to $2,191.23. The shift coincided with analysts’ concerns about the overall price structure of PTL.

Platinum seems to be coming to the end of a possible bear flag,” said another analyst, a platinum bull. The chart set up the 200-day moving average at about $1,870, which it referred to as the first downside target. The next big support level was at about $1,700.

According to DeepValue Signals, the platinum chart is in a “correction” stage and has been retesting a rising channel that was formed before a recent breakdown. As seen in the current structure, platinum is trying to climb back up in the market, and it is struggling while it is trading in a tight range.

That configuration forces focus on whether or not platinum can reverse back above the bear flag zone or validate a deeper breakdown. A failure to close the daily timeframe below the present structure will reinforce the bearish scenario and bring about a concentration at the $1,870 level.

Traders Watch Support After Broad Drop

All other precious metals ended down in Shanghai. Palladium fell 1.86% to $1,499.66, while platinum lost 2.2%. Gold dropped less than silver but still did not escape the overall liquidation.

If prices continue to decline and inventories increase, it could put downward pressure on silver sentiment.

After the significant daily drop, the $83-$84 area is coming into play. If the price bounces from this area, that should tell buyers that there’s still interest; if it were to close lower again, it would be a signal to traders to consider the next support area.

For platinum, it is primarily the structure of the analyst X charts. If the bear flag break continues, traders can look at $1,870 as a first level of support and then $1,700 as a second level of support.

The metals market is now in defensive mode. Silver’s sharp drop in Shanghai, increased vaulting, and platinum’s breakdown of the key technical support level indicate that traders are trimming their holdings while awaiting further confirmation from the support area.