Posted 8th May 2024

Silver Price News: Silver Edges Lower in Lacklustre Trading

Silver prices ticked lower on Tuesday in relatively stable conditions, showing some consolidation after Monday’s gains.

Prices dipped to a low of $27.19 an ounce, before pulling back higher to around $27.25 an ounce later in the afternoon. That compared with around $27.48 an ounce in late deals on Monday.

KAG/USD 1-hourly Kinesis Exchange

Silver followed gold’s lead, with the yellow metal edging slightly lower on Tuesday following a bullish day on Monday.

In general, the precious metals markets were moderately lower on Tuesday on the back of efforts in the Middle East to find agreement on a ceasefire between Israel and Hamas in Gaza. Nevertheless, this appeared to be far from agreed, with Israel ordering tens of thousands of civilians to start evacuating parts of Rafah city ahead of what it described as ‘limited’ operations to target Hamas militants.

The risk of the conflict spreading into a wider confrontation has been a key factor in driving precious metals prices higher due to their safe-haven appeal.

Looking at the price charts, a bearish trend channel has emerged for silver which would peg tentative support at around $25.50 an ounce and potential resistance at around $27.50 an ounce. Any further downside from that area could test trend support at $24.50 an ounce, based on price action since March.

Looking ahead, planned speeches by several US Fed officials on Wednesday will be closely watched for clues on the timing of future interest rate cuts, while Thursday will see the release of weekly US initial jobless claims figures for the latest snapshot on US economic conditions.

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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