Silver prices were relatively stable on Tuesday following Monday’s sharp fall, moving in a similar pattern to gold.
Silver traded in a range of $26.70 to $27.40 an ounce on Tuesday, down from as high as $28.50 an ounce in early deals on Monday.
After a relatively stable February, silver prices underwent a dramatic push higher through March and the first three weeks of April, clocking up multi-year highs of over $30.00 an ounce. The subsequent fall this week suggested traders were taking profits on the sharp increase seen in recent weeks.
Both silver and gold pulled back this week on easing fears that recent hostilities between Israel and Iran could spiral into a wider conflict.
However, silver’s brief dip below the $27.00 an ounce mark on Tuesday morning appeared to bring buyers back to the table, lifting prices back above $27.00 for most of the afternoon session.
With the recent rally running out of steam, the next few days could be helpful in discovering where underlying support for silver will kick in.
Looking ahead, the markets will be watching out for Wednesday’s monthly US durable goods orders figures for March, followed by Thursday’s US GDP growth rates for Q1 and weekly initial jobless claims figures, all of which could provide indicators for the likely path for interest rate decisions in the coming months.
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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