Silver Price News: Silver trying to consolidate after yesterday’s fall

Silver experienced a significant decline on Tuesday, with the spot price now hovering around the key level of $23 per ounce. The downward momentum in silver intensified after the release of better-than-expected US data on new home building permits.

The economy’s strong performance may push the Federal Reserve to raise interest rates higher than previously anticipated, potentially maintaining them at elevated levels for an extended period. Markets are now expecting US rates to peak in the next few months at 5.6%. In other words, the US central bank will raise rates one more time, with a second hike possible depending on the macroeconomic data that will be released.

The silver correction has been much more significant than the one posted by the gold price. Therefore, the gold-silver ratio has now jumped from 81 to more than 83.5 (where this ratio represents the number of ounces of silver needed for purchasing one ounce of gold).

From a technical perspective, the recent decline represents a weakness signal, even if there are strong support zones just below the current levels. Indeed, the bearish pressure could find some obstacles at $22.9 and $22.7, areas that managed to stop the silver decline in late May. Vice versa, we will have a clear inversion if the silver price can return above $24.

Carlo is an external market analyst for Kinesis Money. With a credential background in Economic Finance and International Exchange (MA), Carlo’s critical analysis of gold and silver markets’ performance is frequently quoted by leading publications such as Forbes, Reuters, CNBC, and Nasdaq. 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.