Silver Price News: Silver Falls Back Below $30.00 An Ounce

Silver prices fell on Friday, reversing the previous day’s solid gains, and moving in line with a downward reversal in gold prices on the day.

Silver prices fell as low as $29.51 an ounce on Friday, compared with around $30.78 an ounce in late trades on Thursday.

Prices came under pressure as gold reacted to US manufacturing and services figures for June, which posted stronger readings than the market had expected. The latest macro data supported a ‘higher-for-longer’ scenario for US interest rates, which would act as a headwind for precious metals prices.

Data from interest rate traders currently points to a roughly 66% chance of a US rate cut in September and a 78% chance of a first cut happening in November, according to the CME FedWatch Tool: CME FedWatch Tool – CME Group

Looking at the near-term charts, silver prices have moved in a downward-sloping channel since late May, and if further losses are sustained, eyes will be on the June 13 lows of around $28.70 an ounce to see if that channel has further to go on the downside.

However, zooming out to the six-month chart shows that silver’s longer-term trend remains decidedly bullish, with prices having staged a significant run-up since trading at around $22.30 an ounce in late February.

The longer-term bull case for silver includes several factors, notably strong demand for tangible assets in the face of worries over fiat currencies; a structural supply deficit that is now in its fourth straight year; and a positive longer-term industrial demand outlook linked to the global energy transition, which requires silver for solar panels, batteries and electronics, as well as a host of other applications.

Looking ahead, Monday will see monthly UK CBI Industrial Trends Orders for June, while Tuesday will see Canadian inflation figures for May, followed by German consumer confidence numbers for July on Wednesday.