Silver Price News: Silver Slumps Back Below $24 Level

Silver prices fell back on Thursday, with some of the recent more bullish sentiment ebbing slightly as gold prices stabilised after edging back from all-time highs earlier in the week.

Silver prices moved in a range of $23.60 to $24.04 an ounce on Thursday, down from a seven-month high of over $25.50 an ounce on Monday.

The US dollar gained ground against other major currencies this week, which provided a bearish factor for dollar-denominated gold and silver prices.

Meanwhile, German industrial production fell by 0.4% in October, according to figures released Thursday, below market expectations of a 0.2% increase, and representing a fifth consecutive month of declining output. The health of Europe’s powerhouse economy affects demand for industrial products, and this includes silver, with approximately half of demand for the metal coming from industrial applications.

Nevertheless, silver’s appeal as a precious metal and safe-haven asset also makes it sensitive to monetary policy, and the markets are likely to pay attention to interest rate decisions going into 2024.

US Non-Farm Payrolls figures due out Friday may provide further hints at future interest rate trajectories by the US Fed. A stronger economy would support a ‘higher-for-longer’ scenario for base rates, while signs of a weakening economy would ramp up pressure on central banks to slash rates, providing a lift for precious metals prices.