International News
Silver traders rush to ship bars to London amid historic short squeeze
The global silver market is currently in the grip of a historic and unprecedented short squeeze, driving benchmark prices in London past the per ounce mark for the first time since 1980. This crisis is rooted in a fundamental physical shortage of tradable silver bars in London’s vaults.To meet urgent delivery obligations and capitalize on record-high price premiums, silver traders are engaging in extraordinary measures, including frenzied, high-cost air freight of physical silver bars from New York to London.
This massive transatlantic movement of physical metal highlights the severe dysfunction and illiquidity in the world’s most critical precious metals trading hub.Traders described a market where liquidity has almost entirely dried up, leaving anyone short spot silver struggling to source metal and forced to pay crippling borrowing costs to roll their positions to a later date.
The short squeeze in the London silver market has intensified, driving prices above $50 an ounce, a level not consistently held since the 1980 Hunt brothers’ attempt to corner the market.
Key aspects of the current turmoil include:
- Price Dislocation: Benchmark London spot prices have soared to an unusual and massive premium—reportedly up to $3 per ounce—over the New York COMEX futures price, far exceeding the typical few-cent spread.
- Liquidity Crisis: Market liquidity has nearly evaporated. Banks are reluctant to quote prices, and the bid-ask spread has widened significantly, a clear sign of extreme market tightness.
- Borrowing Costs: The cost to borrow spot silver in London has skyrocketed, with annualized overnight borrowing costs reportedly surging over 100%, surpassing all-time highs from the 1980 squeeze.
International News
Precious Metals Find Support On Ceasefire Optimism AUGMONT BULLION REPORT
Gold Is Trading At Y Oversold Levels Near The Critical Support Zone Of $4,300, Silver Testing Key Support In The $66–$67 Range
- Price Movement – Gold and silver are consolidating near key support levels as markets digest a fragile Israel-Iran ceasefire alongside mounting concerns over inflation and the prospect of further interest rate hikes.
- Geopolitical Developments – President Trump confirmed that both parties are pursuing an immediate ceasefire, with final negotiations advancing. Israel and Iran announced a mutual halt to hostilities following a direct appeal from Washington. However, Tehran cautioned that it reserves the right to resume strikes if Israeli operations against Hezbollah in Lebanon continue.
- Macro-economic Signals – CME FedWatch data shows markets now pricing a greater than 70% probability of a Fed rate hike by December. Investors are closely watching May’s U.S. CPI and PPI releases, due Wednesday, for clearer signals on the Fed’s policy trajectory. The European Central Bank is also widely expected to deliver a rate increase this week.
Technical Triggers
- Gold is currently trading at deeply oversold levels near the critical support zone of $4,300 (approximately Rs. 1,54,000). A technical rebound of 3–4% is anticipated from current levels, driven by bottom-fishing activity. However, a sustained break below this support would shift the near-term bias decisively lower, exposing the $4,000–$4,100 range (approximately Rs. 1,50,000–Rs. 1,51,500) as the next downside target.
- Silver is similarly oversold, testing key support in the $66–$67 range (approximately Rs. 2,40,000–Rs. 2,42,000). As with gold, a 3–4% technical recovery is the base case on dip-buying, but a confirmed sustainability below this support would accelerate selling pressure toward $60 (approximately Rs. 2,20,000) in the short term.
Support and Resistance
| International Gold Support Level International Gold Resistance Level Domestic Gold Support Level Domestic Gold Resistance Level | : $4300/oz : $4500/oz : Rs 154,000/10 gm : Rs 160,000/10 gm |
| International Silver Support Level International Silver Resistance Level  Domestic Silver Support Level Domestic Silver Resistance Level | : $66/oz : $75/oz  : Rs 240,000/kg : Rs 260,000/kg |
Abaran Timeless Jewellery Champions Heritage Conservation To Safeguard Traditional Craftsmanship
De Beers – The New Power Move: Why Natural Diamonds Are The Definitive Daily Essential For The Modern Indian Man
US Diamond Acquisition Study By De Beers Suggest That Diamonds Continue To Hold Strong Emotional and Aspirational Appeal For Today’s Consumer
“Artificial Do. Silver Lo” – GIVA Brings Back Its Most Loved Exchange Fest Across 350+ Stores Nationwide
Malabar Group and Institute Of Palliative Medicine Launch ‘Malabar Care Connect’ To Expand Access To Palliative Care
US Diamond Acquisition Study By De Beers Suggest That Diamonds Continue To Hold Strong Emotional and Aspirational Appeal For Today’s Consumer
-
BrandBuzz2 days ago“Artificial Do. Silver Lo” – GIVA Brings Back Its Most Loved Exchange Fest Across 350+ Stores Nationwide
-
National News1 day agoMalabar Group and Institute Of Palliative Medicine Launch ‘Malabar Care Connect’ To Expand Access To Palliative Care
-
DiamondBuzz1 day agoUS Diamond Acquisition Study By De Beers Suggest That Diamonds Continue To Hold Strong Emotional and Aspirational Appeal For Today’s Consumer
-
National News2 days agoMCX Gold, Silver Rise On US-Iran Diplomatic Breakthrough
JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.