Silver Backwardation Reaches Historic Highs Amid Global Market Volatility

The silver market experienced a rare backwardation condition, where spot prices exceeded futures prices, signaling potential major shifts in silver's valuation and market dynamics. This backwardation reached record spreads, surpassing historical events like the Hunt Brothers' cornering and the Covid-19 pandemic, with concerns spreading to the gold market as well. Meanwhile, gold prices have sharply declined from record highs above $4,381 per ounce to below $3,900 amid growing optimism about a U.S.-China trade resolution and a rally in stock markets, leading to significant outflows from safe-haven assets. Despite this sector-wide pressure, major gold producer Newmont Mining reported strong operational fundamentals, including record cash flow and debt reduction, even as its shares declined. In Bhubaneswar, local gold prices fell significantly while silver prices remained stable, reflecting a complex interplay of international economic factors such as a strengthening U.S. dollar influencing demand and pricing. These developments collectively highlight volatility and evolving investor sentiment in precious metals amid geopolitical and economic uncertainties.