Silver prices fell back below the $23.00 per ounce level on Tuesday, adding to the modest losses seen on Monday.
The dominant theme appeared to be profit-taking after the previous week’s sharp gains, which saw prices rally to a one-month high.
Prices briefly eased as low as $22.74 per ounce before rebounding to touch the $23.00 level later in the day. That compares with a high of $23.36 on Monday.
Silver prices, to some extent, took a lead from moderately weaker gold prices at the start of the week, which came as the market took a breather, after a three-week-long rally.
German GfK Consumer Confidence figures for November released Tuesday came in slightly below forecasts, lending a bearish tone to the market. Approximately 50% of the demand for silver comes from the industrial sectors, making economic data a key input for prices.
The markets will be keeping an eye on Wednesday’s Bank of Canada (BoC) interest rate decision, which is expected to see no change from the current 5% rate.
The tightening monetary policy among central banks over the last few months has created headwinds for non-yield-bearing assets like silver and gold, although signs that rates could now be reaching a peak could help stem further losses. Despite this being the case for traditional bullion investment, Kinesis offers a monthly yield on gold and silver for storing the metals at no cost, in an insured, global vaulting network.
US durable goods orders and quarterly GDP figures due on Thursday are both expected to show a rebound from previous data, providing a potentially supportive element for silver prices.
Carlo is an external market analyst for Kinesis Money. With a credential background in Economic Finance and International Exchange (MA), Carlo’s critical analysis of gold and silver markets’ performance is frequently quoted by leading publications such as Forbes, Reuters, CNBC, and Nasdaq.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.
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