Silver prices were range-bound on Tuesday, showing little momentum in either direction as the markets awaited fresh stimulus.
Prices briefly managed to reach $22.50 an ounce, but most of the activity took place in a range of $22.30 to $22.45 an ounce. That was within the previous day’s range of $22.26 to $22.72 an ounce.
The market appeared to ignore a surprise jump in German factory orders for December, which rose 8.9%, compared with expectations of a flat reading for the month, according to figures released Tuesday.
The relative stability on Tuesday came after silver prices fell to a two-week low on Monday, which may have attracted a degree of bargain hunting.
However, the latest figures out of Germany may have done little more than temporarily stem silver’s losses. The silver market has been mostly in retreat over the last couple of months, since prices hit highs of $25.50 an ounce in early December 2023. The overall bearish trend is linked to declining expectations of an imminent start to interest rate cuts by the US Fed.
Any further price downside from this point is likely to focus minds on the previous week’s low of around $22.00 an ounce as the markets try to assess where buy-side support can be found. This level is also linked to the earlier lows seen in November 2023, and any rebound from $22.00 would likely help solidify this as a support base.
Looking ahead, Wednesday will see a number of US Fed officials give their views on economic conditions, potentially providing further clues on future interest rate trajectories.
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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