Silver Price News: Silver Looks for new Market Drivers to Continue Recovery

Silver prices began the new week just below $25 per ounce. However, the metal experienced a bearish trend in the last two trading sessions, with prices declining shortly after reaching a 10-week high near $25.5 per ounce on Thursday and Friday. Although silver saw an overall loss of around 1.8% last week, the year-to-date and 30-day performances remain remarkably positive, with gains of +3% and +10%, respectively.

Currently, the first support zone for silver is positioned at $24.5, followed by other key levels at $24.1 and $24.2. These areas may act as potential targets for the ongoing decline, which has been accelerated by the recovery of the US dollar in the currency market.

From a technical standpoint, the recent drop does not indicate an inversion but rather a correction following a significant bullish movement. After testing the support zone of $22 in late June, the silver price progressively gained strength and jumped to $25.5 without any significant pauses. Consequently, the recent slowdown could allow silver to regain momentum and continue its positive trend.

The next Federal Reserve decision will undoubtedly substantially impact the silver price. The US Central Bank is expected to conclude the tightening process this week, with rates increasing from 5.25% to 5.50%. However, market forecasts suggest a more dovish approach in 2024, with strong possibilities of rate declines starting from Q2 2024. Such a shift in monetary policy could be a positive market driver for the silver price.

Carlo is an external market analyst for Kinesis Money. With a credential background in Economic Finance and International Exchange (MA), Carlo’s critical analysis of gold and silver markets‘ performance is frequently quoted by leading publications such as Forbes, Reuters, CNBC, and Nasdaq. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.