Silver Price News: Silver Falls Below $29.50 an Ounce

Silver prices eased by about 1.5% on Tuesday, as the precious metals markets continued to look more subdued after falling back from recent long-term highs.

Silver prices fell as low as $29.07 an ounce on Tuesday, before edging higher to around $29.27 an ounce later in the day. That compared with around $29.80 an ounce in late trades on Monday.

A more cautious mood emerged in the silver market this week after last Friday’s sharp drop from as high as $31.54 an ounce. Silver posted its highest price for 11 years on May 28 at over $32.60 an ounce.

As recently highlighted, May’s ‘double top’ price formation for silver was a distinctly bearish indicator, as it showed that prices had failed to surpass the previous highs of over $32.00 an ounce. This suggested little appetite in the market to move to fresh highs, indicating a greater chance of a downward move in the short-term.

Nevertheless, gold prices managed a slight recovery on Tuesday, and this could help stabilise silver prices if the yellow metal’s gains continue over the coming days.

The precious metals markets were looking ahead to Wednesday’s release of US inflation figures for May, as traders scan for signals on the timing of interest rate cuts later in the year. The US Fed is set to make an interest rate decision on Wednesday, although few in the market expect any changes to the current 5.5% rate at this juncture.

Thursday will see further clues on inflation in the shape of the US Producer Price Inflation figures, which will give the latest snapshot on factory gate prices in May, followed by the Michigan consumer sentiment figures for June on Friday.