Silver Price News: Silver Firms Slightly as Gold Edges Higher

Silver prices gained around 0.7% on Thursday, taking a lead from moderate strength in the gold price and a slightly weaker US dollar.

Prices rose as high as $29.28 an ounce on Thursday, before easing back to around $29.00 an ounce by late afternoon. That compared with around $28.74 an ounce in late trades on Wednesday.

The slight uptick for silver came as gold prices rebounded off the $2,300 an ounce mark, providing a supportive backdrop for the precious metals markets. The shift to a positive move for silver follows two days of losses for the grey metal.

In addition, moderate US dollar weakness and lower treasury yields on Thursday may have provided a modicum of support for silver prices. Nevertheless, silver prices were still hovering at just above a six-week low as of Thursday.

On the technical charts, silver prices are still moving within a downward-sloping channel that’s been in place since the peaks of over $32.00 an ounce seen in late May, and this channel implies support at around $27.50 to $28.00, and resistance at just over $30.00 an ounce.

Short-term technical weakness aside, silver’s fundamentals still suggest a supportive environment for prices overall in 2024. Total global supply of silver is forecast to fall by 1% to 1.004 billion ounces in 2024, while total demand is set to rise by 2% to 1.219 billion ounces, according to industry group, the Silver Institute: SILVER SUPPLY & DEMAND | (silverinstitute.org) 

If borne out, that would leave the silver market in a structural supply deficit for a fourth consecutive year.

Looking ahead, the markets will be watching out for Friday’s US Core PCE Price Index for May, with keen interest in how inflation is shaping up as the US Fed is expected to start cutting interest rates in the autumn – a bullish element for non-interest-bearing precious metals.