Silver Price News: Silver Rebounds After Sharp Falls on Wednesday

Silver prices ticked higher on Thursday, in a modest rebound following Wednesday’s slump.

Price rose as high as $29.71 an ounce, compared with Wednesday’s drop to as low as $29.13 an ounce. Silver followed in gold’s footsteps on Thursday as the yellow metal gained ground to hold close to recent all-time highs.

Silver’s slight gains came in the context of a more pronounced fall on Wednesday from around $30.10 to around $29.20 an ounce later in the session – a drop of almost 3%.

In August, both silver and gold have taken support from expectations of imminent rate cuts by the US Fed, now due in less than three weeks’ time, with around 100 basis points of cuts expected in total by year’s end. Lower interest rates tend to boost the appeal of non-interest-bearing investments.

Support for precious metals has also come from a fall in the value of the US dollar against other major currencies through August, with a weaker dollar making gold and silver cheaper for buyers in other currencies, boosting demand. However, a rebound in the dollar this week has curbed the gains for silver, putting prices under downward pressure on Wednesday.

On the technical charts, silver prices are still in the middle of the range seen over the last five months, with horizontal support at around $26.00 an ounce and resistance at around $32.50 an ounce. More recent trend support has been seen at $26.65 an ounce, representing the lows in August. On the upside, silver has recently struggled to gain a foothold above $30.00 an ounce this week.

The markets will be looking ahead to Friday’s release of Euro Area inflation figures for August and the US Core PCE Price Index for July, as participants scan the latest figures for signs of any changes to the outlook for interest rates, with a first cut expected by the US Fed in September.