Posted 29th May 2024

Silver Price News: Silver Rebounds To Test 11-Year Highs

Silver prices were moderately higher on Tuesday, adding to Monday’s hefty gains as the metal rebounded close to recent 11-year highs.

Prices rose as high as $32.33 an ounce on Tuesday before edging back down to around $31.90 an ounce later in the session. That compared with around $31.65 an ounce on Monday, when prices rallied by more than a dollar an ounce.

KAG/USD 1-hourly Kinesis Exchange

The bullish moves for silver prices so far this week contrasted with gold, which looked more subdued at the start of the week, following the previous week’s significant slump.

Silver’s rebound to around $32.00 an ounce this week means the price has returned to within striking distance of its recent 11-year highs of just over $32.60 an ounce.

On the demand side, China’s record-breaking installation of solar panels in Q1 bodes well for silver demand as the global energy transition powers ahead, according to a report on Monday by technology and precious metals trading company Heraeus.

Looking ahead, the markets will be watching out for US GDP growth numbers and unemployment figures on Thursday for the latest readings on the US economy.

Silver’s dual role as a precious and industrial metal means it has also benefited from the current environment of reasonably strong economic growth and high inflation, boosting precious metals as a hedge against rising costs, at the same time as market expectations of interest rate cuts later this year which would reduce the opportunity cost of holding non-interest-bearing assets.

Thursday will see the latest industrial production figures from Japan for April, providing a handle on industrial demand for silver in a major developed economy.

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.

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.

Read our Editorial Guidelines here.