Silver Price News: Silver Ticks Higher in Subdued Trading

Silver prices edged slightly higher on Tuesday, tracking a modest rise in the gold price.

Prices crept up to $30.69 an ounce during the day, although prices eased back to around $30.20 an ounce later in the session. The day’s price action showed a roughly 0.75% gain for silver compared with around $30.00 an ounce in late trades on Monday.

US dollar strength curbs silver’s gains

Silver’s initial strength on Tuesday came as gold prices made modest gains on Tuesday morning. However, the US dollar gained against other major currencies on Tuesday, putting downward pressure on dollar-denominated gold and silver prices as a stronger dollar makes the metals more expensive for buyers in other currencies.

2024 seen as another year of supply shortage

On the fundamental side, total global silver demand is expected to increase by 1% in 2024 compared with 2023, while total supply is expected to rise by 2% year on year, according to industry group, the Silver Institute: Silver News December 2024. These figures, taken in isolation, may appear to be slightly bearish for silver prices. However, of greater interest for the price will be recognition that the structural supply deficit was set to continue for a fourth straight year in 2024, standing at 182 million ounces, according to the group’s figures.

Upcoming dataLooking ahead, Wednesday will see Brazilian industrial production figures for November, followed by US initial jobless claims figures for the week ending January 4^th. Following that, Thursday will bring German industrial production figures for November, followed by a flurry of speeches by US Fed officials, as the markets weigh the chances of further interest rate cuts by the central bank.