Silver prices moved slightly lower on Tuesday, revisiting the previous day’s lows of just below $23.00 an ounce.
Silver traded at just below $23.20 an ounce for most of the morning session, but came under selling pressure later in the day, dropping as low as $22.92 an ounce, not far off Monday’s low of around $22.87.
The US dollar strengthened slightly against other major currencies on Tuesday, putting pressure on dollar-denominated silver prices.
The precious metals markets have also been focused on US interest rates and the possible timing of expected reductions this year. The US Fed’s rate hiking cycle is seen as over, and traders are betting on when the first cut will come. Those expectations have moved recently though, with better-than-expected US economic figures causing a drop in the chances of cuts happening as soon as March.
Looking ahead, US monthly inflation figures are set for release Thursday which should help provide further signals on interest rate trajectories.
Meanwhile, Friday will see Industrial Production figures from India – a major consumer of silver. The US dollar’s growing strength against the Rupee during 2023 has made silver less attractive among Indian buyers, acting as a brake against regional demand.
That said, industrial demand for silver globally has been a bright spot in an otherwise weaker demand picture among all other uses of the metal in 2023.
Frank’s experience covering the commodities markets spans 22 years, with a particular specialism in metals, carbon and energy markets. He has worked as a senior editor for S&P Global Commodity Insights (formerly Platts) and before this, at ICIS-LOR, a part of Reed Business Information (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.
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