Silver Price News: Silver Stabilises After Reaching 11-Year High

Silver prices were largely range-bound on Thursday, retaining most of Wednesday’s sharp gains and holding up above the $29.50 an ounce mark for most of the day.

Prices briefly rose as high as $29.93 an ounce in overnight trading Thursday, before easing back into a range of $29.37 to $29.75 for the rest of the day.

The relatively stable conditions followed a jump of over a dollar per ounce on Wednesday which took silver prices to their highest since 2013 – an 11-year high.

The price surge came after figures showed that US inflation rose by 0.3% in April, below market expectations of a 0.4% rise. Signs that inflation may be slowing down raises the prospect of interest rate cuts in the coming months, which tend to support gold and silver prices.

US retail sales figures released Wednesday also came in flat for April, against expectations of a 0.4% rise, adding fuel to the notion that the US Fed may need to slash rates sooner rather than later.

Thursday’s subsequent price stability for silver, and its success at staying above $29.50 an ounce, may be taken as a bullish signal, particularly if this range continues to hold as this potentially sets up prices for another attempt at the $30.00 an ounce mark.

In that context, the markets will be closely watching for further economic data next week, with eyes on Monday’s speeches by several US Fed officials for signals on the path forward for monetary policy.