Affected by the cooling of geopolitical risk sentiment and concerns over less dovish signals than expected before Powell's speech on Friday, the precious metals market experienced a significant correction. During today's Asian trading session, the spot silver price rapidly declined, hitting a low of $37.19/oz, while the TD silver price on the domestic gold exchange fell to 9017 yuan/kg. By 10:30 am, the decline in silver had reached 1.45%.

This substantial drop in silver prices was mainly attributed to the easing of geopolitical tensions. As the US, Ukraine, and Russia released positive signals regarding their trilateral talks, the market's demand for safe-haven assets decreased, with funds flowing out of the gold and silver markets. Additionally, some investors, fearing that Powell's stance at the upcoming Jackson Hole conference might not be as dovish as anticipated, liquidated their long positions in advance, leading to a sell-off in precious metals. The world's largest silver ETF (SLV) reduced its holdings by 15.6 mt yesterday, marking the first net outflow of funds in nearly two weeks. Looking ahead, the precious metals market is expected to maintain a sideways movement in the short term, awaiting clearer direction from the central bank conference.