Silver Price News: Silver Edges Up From Three-Month Lows

Silver prices clawed back some ground on Friday, showing a partial recovery from two days of sharp losses.

Prices rose to $29.55 an ounce by late Friday, up from around $29.08 an ounce in late trades on Thursday.

Wednesday saw prices drop from around $30.50 to below $29.40 an ounce as the US Fed’s 25-basis-point interest rate cut pushed the US dollar up to a two-year high against other currencies, putting downward pressure on dollar-denominated precious metals prices. Expectations of higher inflation in 2025 have prompted markets to scale back their bets on further interest rate cuts next year – a bearish signal for non-interest-bearing assets like silver.

Three-month low attracts buyers

Thursday saw a continuation of the bearish trend, with silver prices dipping below the $29.00 an ounce mark – the lowest price since mid-September. The lower numbers may have attracted some bargain hunting, helping silver to stage a modest recovery on Friday to end the week with a 3.4% loss overall.

Technical analysis

On the technical charts, silver bounced off horizontal major support this week at $28.89 an ounce, and on Friday traded some way below its 20-day moving average at $30.64 an ounce. In addition, the 10-day Relative Strength Index gives a reading of 36, which is low enough to raise the prospect of a short-term bullish swing if conditions are supportive. Should prices head lower, the next level to watch is ascending oblique major support at $28.54 an ounce.

Upcoming data

Looking ahead, Monday will see Canadian GDP and US consumer confidence figures, followed by US durable goods orders on Tuesday. Beyond that, the markets will be winding down for the seasonal break, although there may be some interest in Thursday’s US initial jobless claims figures and industrial production figures for Japan, a major consumer of silver.