Silver Price News: Silver Under Pressure on Mixed Growth Message

Silver has continued to lose ground this week, with a particularly volatile trading session on Wednesday being followed by a one month low on Thursday. Silver enters Friday trading near these levels at $29/toz, with near-term resistance at $29.3/toz and $29.5/toz and support at $28.6/toz.

While Wednesday’s move by the US Federal Reserve to cut its ‘dot plot’ estimate of rate cuts from three to just one this year is an additional headwind to silver, the impact is likely to have been marginal. As noted in our gold review, both US 2-Year and 10-Year yields have actually fallen over the week and the while there has been some midweek volatility in the dollar, it is little changed since Monday.

Moreover, as an industrial metal, the global growth outlook is also a significant silver price driver. While growth has generally exceeded expectations this year and this has itself been a source for the Fed’s caution on rates than expected in 2024, more recent data has been more mixed. EU and UK industrial production disappointed this week. In contrast, a recovery in the Atlanta Fed’s GDPNow nowcast suggested a healthy 3.1% US real GDP growth in the current quarter.

The market calendar for today is quite light with only June US Michigan Consumer Sentiment and May China New Yuan Loan prints likely to be of some interest to silver investors.