PRECIOUS-Silver bounces back even as retail frenzy takes a break

(Updates prices)
* CME's move allowing markets to breathe easy-analyst
* Billion ounces of silver traded in London on Monday - LBMA
* FACTBOX-How silver is traded By Sumita Layek
Feb 3 (Reuters) - Silver attempted a rebound on Wednesday
after an over 8% plunge in the previous session prompted
investors to buy in, although the social media-driven rally that
started last week appears to have run out of steam.
Spot silver XAG= rose 0.7% to $26.80 an ounce by 0824 GMT.
Prices hit $30.03 on Monday, their highest since February
2013, after small investors responding to social media calls
flooded the market in a GameStop-style squeeze.
"The (retail) frenzy is dead," Stephen Innes, chief global
market strategist at financial services firm Axi said, adding
the underlying demand for silver on the back of green energy
drive will support prices.
Silver, both a safe-haven asset and an industrial metal,
plunged over 8% on Tuesday after CME Group raised maintenance
margins on silver futures by 17.9% on Monday, in a move aimed at
reducing market volatility. "(CME's intervention) is allowing the markets to breathe a
lot more easier because that fear of retail flash mobs has
diminished quite greatly," Innes added.
The buzz that started last Thursday saw silver dealers
scramble to find supplies for retail buyers, while one billion
ounces of silver was traded in London on Monday.
"Silver prices are now finding an equilibrium that better
reflects supply-demand fundamentals, with the WallStreetBets
mania having simmered down," said FXTM market analyst Han Tan.
As global economy attempts a recovery, silver can showcase a
more organic and orderly run-up to the psychologically-important
$30 mark, he added.
Holdings in iShares Silver Trust, the largest silver-backed
ETF HLDISHAST=XAG , jumped by a record 57.8 million ounces,
data showed on Tuesday. GOL/ETF
Analysts expect some volatility to continue even though
posts on the WallStreetBets Reddit forum, which sparked this
retail rush, urged traders to stay away from silver.
Spot gold XAU= eased 0.1% to $1,835.60 per ounce. U.S.
gold futures GCv1 added 0.2% to $1,836.80.
Platinum XPT= shed 0.2% at $1,092.52 and palladium XPD=
fell 0.6% at $2,228.19.