Silver Price News: Silver Steady After Fresh 11-Year High

Silver prices briefly rose to a fresh 11-year high of $32.63 an ounce on Tuesday – the highest price since December 2012.

However, prices drifted back down to around $32.05 an ounce later on Tuesday. That compared with Monday’s range of around $31.10 to $32.48 an ounce.

Silver’s action largely mirrored gold prices, which hit a new all-time high on Monday, albeit with a slight downward bias on Tuesday.

Fundamentals were already looking supportive for silver prices in 2024, after industry group the Silver Institute forecasted a structural supply deficit this year for the fourth consecutive year.

Gold’s recent push to all-time highs above $2,400 an ounce has been seen as giving ‘permission’ for silver to break through resistance into higher territory. This was particularly evident when the gold/silver price ratio hit highs of over 90 in January and February, suggesting that silver was undervalued in a relative sense to gold, and setting the market up for a potential leg higher. Silver’s recent gains have since reduced the gold/silver ratio back to around 76 as of Tuesday.

Looking ahead, Thursday will see manufacturing data released for Japan, India, France, Germany, UK and the wider Euro Area, providing a snapshot of industrial activity in those countries. While silver’s status as a precious metal means it is in demand as an inflation hedge and a store of value against weakening currencies, its widespread use as an industrial metal also makes it sensitive to manufacturing activity levels.

The markets will also be watching out for Thursday’s US initial jobless claims figures for the latest pulse check on the US economy.