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.
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