Silver prices saw a marked drop on Monday and Tuesday, with values falling sharply from a seven-month high.
Prices fell as low as $23.98 an ounce Tuesday, compared with over $25.50 an ounce early Monday. The move lower came as gold prices retreated from all-time highs at the start of the week.
Silver prices had pushed within striking distance of $26.00 an ounce – a level last seen in April and May, but the higher values appeared to attract sellers, bringing prices back down.
The market was digesting mixed signals from the US on Tuesday which showed stronger than expected growth in the services sector in November, but a drop in job openings in October.
Figures indicating the health of the US economy matter for silver prices because they provide signals on likely interest rate decisions by the US Fed, but also on the health of the economy in general, which can determine demand for silver in the industrial sectors. Looking ahead, Thursday will see the release of Chinese balance of trade data. Eyes will be on the latest readings from Asia’s giant economy after ratings agency Moody’s on Tuesday maintained China’s A1 credit rating but downgraded its outlook from ‘stable’ to ‘negative’. The move prompted China’s finance ministry to dismiss the downgrade as “unnecessary.”
And on Friday, the markets will be watching for the monthly US Non-Farm Payrolls figures to get a handle on the state of America’s economic health, particularly in view of possible interest rate cuts in the first half of 2024.
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