Silver Price News: Silver Edges Lower In Line with Gold

Silver prices fell on Friday, unwinding some of the previous two days of gains, with prices moving in line with a modest pull-back for gold.

Silver prices eased to a low of $30.19 an ounce on Friday, compared with around $30.82 an ounce in late trades on Thursday.

Movements in the currency markets had some influence over precious metals last week, with weakness in the US dollar seen earlier in the week providing a boost for gold and silver prices on Wednesday and Thursday. Despite Friday’s dip, silver prices managed to hold up above the psychological $30.00 an ounce level.

Uncertainties cloud industrial demand outlook

Demand for silver from the industrial sector has been a supportive element for silver prices in 2024. However, uncertainties have emerged over Chinese demand for silver in photovoltaics after an oversupply problem prompted the government to try to regulate supply, raising questions over the sustainability of demand for silver in solar panel production in Asia’s giant economy.

Technical analysis

Turning to the technical charts, silver’s attempt to break above $31.00 an ounce on Thursday appeared to run out of steam, and this coincides with oblique minor resistance at $30.77 an ounce – an area that may have come into play last week. On the downside, should the $30.00 level fail to hold, a potential support zone can be found at around $29.30 an ounce.

Upcoming data

Looking ahead, Monday will see the inauguration of US President-elect Donald Trump, which is likely to dominate headlines. However, the markets will be watching out for Tuesday’s Euro Area economic sentiment figures for January, as well as Canadian inflation figures. Economic data will continue to feed into expectations for monetary policy, with the markets currently pricing in US interest rate cuts of only 25-50 basis points in 2025, compared with around 100 basis points expected a few months ago.