Silver Price News: Silver Retreats From Six-Week High

Silver prices fell by about 1.9% on Friday, giving up the previous day’s gains.

Prices fell as low as $30.43 an ounce on Friday, before stabilising at around $30.85 an ounce later in the afternoon. That compared with around $31.40 an ounce in late trades on Thursday, when prices hit a six-week high.

The price action shows that silver gave up Thursday’s gains, which came as US inflation figures for June came in lower than market expectations, reinforcing hopes that the US Fed will start to cut rates in September.

Silver’s price action leaves the grey metal down by about 1.3% across the week as a whole.

Nevertheless, July has been a bullish month for silver so far, with the market showing signs of breaking out of a downward-sloping trend channel that emerged from late May until the end of June.

The markets will be looking ahead to Monday’s Euro Area industrial production figures for May, with the market expecting a 1% decrease from April levels. The industrial demand segment for silver has become more important as a source of consumption for the metal in recent years, and this has been boosted by silver’s key role in several applications that benefit from the energy transition, such as solar panels, electric vehicles, batteries and electronic circuits.

Looking further out, US retail sales figures for June are due out on Tuesday, while Wednesday will see the Euro Area inflation rate for June, followed by US monthly industrial production figures.