The West Texas Intermediate crude oil or the US oil markets initially tried to rally during the trading session on Wednesday, but the $70 level has caused a bit of a headache.
We pulled back from there to turn around and form a negative candlestick.
This probably isn’t too much of a surprise considering that the $70 level is a large round psychologically significant figure so there’s probably a lot of options being traded there. Plus, it has also been both support and resistance in the past, so a little bit of market memory came into the picture as well.
Underneath we have the $66.50 level offering and support followed by the $65 level which have been massively supported.
The Noise has Been a Bit Much
Crude oil has been very noisy as of late, but there are a lot of concerns about demand. That just doesn’t seem to be as much as the global economy is slowing down. All of this being said, it is worth noting that the Trump administration in the United States will almost certainly increase production and therefore add more supply to the mix. But on the other side of this equation, and this is one that might be a bit more immediate, the escalation in Ukraine is going to make some people nervous about Russian supply. Furthermore, let’s not forget that the Middle East can go up in flames at any time as well.
So, with all of this being said, I do think we’re closer to a bottom than a top, but a short term pullback does make a certain amount of sense. If we could break above the $70 level, it could open up a move to roughly $70.50 followed by $72. All things being equal, this is a range-bound but somewhat limp market. With this, I would focus on short term trading more than anything else, perhaps looking at smaller positions as well.
Copper, the third most used metal, plays a crucial role in the energy transition, particularly in electrification and renewable energy. Recent market movements, particularly China’s stimulus measures, have led to significant volatility in copper prices, making the metal’s future uncertain.
Copper futures are actively traded on major platforms like the London Metal Exchange (LME), COMEX, and the Multi-Commodity Exchange (MCX) in India. Copper is the third most used metal globally, particularly in modern industries.
Chile is the top producer, contributing over one-third of the world’s supply, followed by Peru, the Democratic Republic of the Congo, China, the United States, and others. The largest copper importers include China, Japan, India, South Korea, and Germany.
Copper prices have shown significant volatility in October 2024, driven primarily by economic developments in China. The country’s central bank introduced a substantial stimulus package in late September to revive its economy, including monetary measures like lowering interest rates and easing mortgage payments.
These actions briefly boosted copper demand and drove the London Metal Exchange three-month (LME 3M) copper price to a four-month high of $9,995 per metric ton on September 27.
However, the optimism was short-lived as market participants realized that details about the spending of the stimulus package were unclear. This, combined with a stronger U.S. dollar and weaker demand for copper, led to a price dip.
By October 17, the LME 3M copper price had fallen to $9,506 per metric ton as reported and shown below by S&P Global Commodity Insights.
On Monday, copper futures fell to around $4.31 per pound after gaining in the prior two sessions. This decline was driven by a stronger dollar and rising U.S. Treasury yields as a resilient US economy dampened hopes for significant interest rate cuts by the Federal Reserve.
Meanwhile, investors are watching the upcoming National People’s Congress meeting in China (November 4-8) for updates on debt and fiscal measures.
Production Setbacks Tighten Supply
Global copper supply has faced challenges, particularly from production setbacks in key regions. A significant incident affecting supply was a fire at Freeport-McMoRan Inc.’s Manyar smelter in Indonesia, which delayed the smelter’s production start to early 2025. This event has resulted in adjustments to the concentrate market deficit forecast.
Other production challenges included reduced output at key smelters in China, including Baiyin and Jinxin, further tightening the concentrate supply.
Therefore, the anticipated deficit for 2024 is now at 52,000 metric tons. And a larger deficit of 848,000 metric tons is projected for 2025.
Despite these supply disruptions, treatment charges (TC) for copper concentrates could stay at $35 per dry metric ton in 2025. This suggests that tightness in concentrate supply will persist, potentially causing upward pressure on smelter margins.
Demand Dilemma: EV Boom Bolsters Copper, But Buyers Hold Out for Better Prices
The Chinese market exhibited mixed signals. Following the national holidays in early October, downstream copper buyers anticipated further price drops, leading to a slowdown in new orders.
As a result, production cuts were reported among wire and cable manufacturers. Some buyers shifted to using copper scrap due to its greater availability, delaying purchases of primary copper.
Not all demand indicators were weak. China’s electric vehicle (EV) sector provided a boost, with EV production rising 48.8% year-over-year in September 2024. This trend supported higher demand for copper components, crucial in EV manufacturing.
Copper is the best metal for conducting electricity, so it is critical for EVs and batteries, as well as other green energy sources like wind and solar.
An EV uses about 3x more copper than a regular gas-powered car. As the shift to cleaner energy continues, EVs are expected to increase their share of total copper demand from around 11% in 2021 to over 20% by 2040.
According to BHP’s data, global copper demand will increase by about 70%, reaching over 50 million tonnes annually by 2050. The traded metal will see an average annual growth rate of 2% as shown below.
Source: BHP website
Market Outlook: Copper Prices in 2025
Looking ahead, experts expect copper prices to stay under pressure due to the current balance of supply and demand. However, potential boosts in orders at lower prices and seasonal demand could provide support for prices.
For 2025, the forecast is for a tighter concentrate market, with a predicted shortfall of 848,000 metric tons. This, in turn, could help stabilize prices around $9,825 per metric ton. Despite current challenges, the outlook suggests a mix of cautious optimism and continued volatility in the copper market.
Silver price extends its recovery to near $31.00 as demand for safe-haven asset improves.
Russia threatens to attack Ukraine with nuclear-capable ballistic missiles.
The US Dollar recovers with investors focusing on a slew of US economic data.
Silver price (XAG/USD) recovers further to near $31.00 in North American session on Friday. The white metal bounced back on Thursday after posting a fresh 11-week low near $29.60. The asset strengthens as investors fear that Russia could launch a nuclear attack on Ukraine.
Russia threatens a possible nuclear-capable ballistic missile strike on Ukraine, followed by firing a series of Intermediate Range Ballistic Missiles (IRBM) on 17 targets, including defense and energy facilities. The prevailing war between Russia and Ukraine keeps the demand for safe-haven assets intact. This was the second-largest Russian attack on Ukraine, according to Ukraine’s energy ministry. Historically, the safe-haven appeal of precious metals such as Silver increases at times of global market uncertainty or heightened geopolitical risks.
In the Middle East, tensions between Israel and Iran have eased, with a ceasefire coming into effect early this week.
Meanwhile, the US Dollar (USD) rebounds strongly as investors shift focus to the United States (US) labor market and business activity data, which will be released next week. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, bounces back after posting a fresh two-week low near 105.60.
Silver technical analysis
Silver price rebounds strongly after sliding to near the upward-sloping trendline around $29.50, which is plotted from the February 29 low of $22.30 on a daily timeframe. Still, the outlook of the Silver price is bearish as a bear cross, represented by 20 and 50-day Exponential Moving Average (EMA) around $31.30, points to an escalation in the downside trend.
The white metal weakened after the breakdown of the horizontal support plotted from the May 21 high of $32.50.
The 14-day Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, suggesting a sideways trend.
Silver daily chart
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver price extends its gains due to the rising Russia-Ukraine conflict.
Russian President Vladimir Putin issued a warning about a potential nuclear-capable ballistic missile strike on Ukraine.
The demand for the dollar-denominated Silver increases due to the subdued US Dollar.
Silver (XAG/USD) continues its upward trend for the second consecutive session, hovering around $30.70 during the Asian trading hours on Friday. This rally in Silver price is largely driven by escalating geopolitical tensions. Reports suggest that Russian President Vladimir Putin warned of a possible nuclear-capable ballistic missile strike on Ukraine, following Moscow’s recent large-scale attacks on key energy infrastructure.
Meanwhile, a ceasefire between Israel and the Lebanese militant group Hezbollah was successfully maintained on Wednesday, thanks to a deal brokered by the United States and France. This truce has enabled residents to begin returning to their homes. However, Israel is still engaged in military operations against Hamas in the Gaza Strip.
Furthermore, the weakening of the US Dollar (USD) is making dollar-denominated Silver more affordable for buyers with foreign currencies, boosting its demand. Additionally, the US bond market has strengthened after US President-elect Donald Trump selected Wall Street veteran and fiscal conservative Scott Bessent as the US Treasury Secretary.
Markets are closely monitoring upcoming US data for further clues about the Federal Reserve’s (Fed) monetary policy direction. On Wednesday, US core PCE prices for October met expectations, keeping investor hopes alive for another rate cut in December. However, other data indicated a resilient economy, suggesting that the Fed may take a cautious approach in the coming year.
According to the CME FedWatch Tool, futures traders are now pricing in a 66.5% probability of a 25 basis point rate cut in December, up from 55.9% a week ago. However, they expect the Fed to keep rates unchanged during its January and March meetings.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Gold price eyes weekly declines, despite the recent turnaround from weekly lows.
Sustained bets for December Fed rate cut bets and Russia-Ukraine geopolitical woes support Gold price.
Technically, Gold price faces stiff resistance on the daily chart while the RSI regains the 50 level.
Gold price extends its gradual recovery mode and tests the critical $2,670 resistance early Friday, having hit a weekly low of $2,605 on Tuesday. A broadly subdued US Dollar (USD) performance alongside the US Treasury bond yields lend support to the Gold price upswing.
Gold price awaits fresh catalysts for the next direction
Despite the growing risks of a global tariff war, US President-elect Donald Trump’s tariffs announcements earlier in the week, the USD maintained its downbeat performance against its major rivals amid sustained bets that the US Federal Reserve (Fed) will lower interest rates by 25 basis points (bps) in December.
The in-line with expectations US Personal Consumption Expenditure (PCE) Price Index data released on Wednesday failed to deter Fed rate cut expectations as markets now pricing in about a 63% chance of a December Fed rate reduction, the CME Group’s FedWatch Tool shows, up from about 55% seen a week ago.
The dovish sentiment around the Fed’s next policy action continues to underpin the non-interest-bearing Gold price.
Meanwhile, the traditional safe-haven Gold price also capitalizes on renewed geopolitical tensions between Russia and Ukraine after several media outlets reported that Russian President Vladimir Putin threatened to attack decision-making centres in the Ukrainian capital of Kyiv with the country’s new ballistic missile, Oreshnik.
This came after Moscow launched a “comprehensive” strike on Ukraine’s energy grid overnight in retaliation to Ukraine’s “continued attacks” using US-supplied Atacms missiles on Russian soil.”
Looking ahead, it remains to be seen if the Gold price will build on the recovery momentum amid thin trading conditions, as US traders could be away due to the Thanksgiving long weekend. Further, the Gold price could also benefit if the US Dollar sees a fresh leg lower amid extended declines in the USD/JPY pair.
The sharp rebound in the Japanese Yen comes after the Tokyo inflation data arrived hotter than expected and bolstered rate hike bets from the Bank of Japan (BoJ) next month.
It’s an empty US docket on Friday, therefore, the Eurozone inflation report could somewhat drive the sentiment along with the end-of-the-week flows, impacting the Gold price action.
Gold price technical analysis: Daily chart
Technically, Gold buyers are fighting back control, justified by the 14-day Relative Strength Index (RSI) briefly recapturing the 50 level.
However, with the Bear Cross still playing out, Gold price’s bullish conviction could likely peter out.
If Gold buyers fail to find acceptance above the 50-day SMA at $2,670 on a daily closing basis, sellers will likely jump back, sending the bright metal back toward the previous day’s low of $2,621.
The next support aligns at the weekly low of $2,605, below which a drop toward the 100-day SMA at $2,573 cannot be ruled out.
On the flip side, a sustained move above the 50-day SMA at $2,670 could open up the upside toward the $2,700 level.
Further north, the November 25 high of $2,721 will be put to the test.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
A decisive break out of the triangle pattern triggered with a move above 3.02 on November 20. Since the bull breakout has only just begun, an eventual continuation to higher prices is anticipated once the current correction is complete. This is just the first pullback following the breakout through key price levels.
Not only was there a triangle breakout but also a clear continuation of the rising trend that began from the 2024 low in February. It is shown as a rising ABCD pattern (orange) on the chart. Within that trend is a smaller ABCD pattern (purple) that rises from the August swing low. That second pattern triggered a bullish continuation on the rally above 3.02.
Red Candles Show Distribution
It remains to be seen whether the correction will be short in duration or prolonged. Resistance was seen at the top of the rising trend channel last week from a high of 3.56. A sharp intraday decline followed, culminating in a bearish reversal day. The parallel channel shows an organized price structure that reflects symmetry in the behavior or price. A rising middle line (dotted) shows price action roughly equal distance above and below the line.
Channel Symmetry Targets Lower Line
Given that there is symmetry, there is a good chance that the lower channel line is tested as support before the bearish correction is complete. This doesn’t mean that it will reach the lower line, just that there is a good chance that it might. The recent two long red candles, first on November 22 and then again yesterday, show distribution, and they may be providing a clue that there is more selling to come before the correction completes. However, that outlook would switch if there was a sharp rise above Wednesday’s high of 3.47 and it was sustained.
For a look at all of today’s economic events, check out our economic calendar.
United States markets are closed amid the celebration of the Thanksgiving Holiday.
Market participants maintain bets the Federal Reserve will trim interest rates in December.
XAU/USD gains downward traction in the near term, could soon pierce $2,600.
Spot Gold remains lifeless below the $2,650 level on a quiet Thursday as investors gear up for an extended weekend. The batch of United States (US) macroeconomic data released on Wednesday anticipated the ongoing quietness, as all American markets are closed amid the Thanksgiving Holiday.
On a positive note, the bright metal finds support in mounting expectations that the Federal Reserve (Fed) will deliver another 25 basis points (bps) interest rate cut when it meets in mid-December. At the time, according to the CME FedWatch Toll, the odds are roughly 70%.
Meanwhile, European stocks closed in the green, led by the tech sector amid receding concerns about the US imposing fresh tariffs on China’s products.
XAU/USD short-term technical outlook
From a technical point of view, XAU/USD has made little progress. It’s trading barely up for a third consecutive day, still confined to the lower end of its weekly range after plummeting on Monday. Technical readings in the daily chart show that the risk skews to the downside, as Gold is meeting sellers around a bearish 20 Simple Moving Average (SMA) for a second consecutive day. The 100 and 200 SMAs, in the meantime, remain well below their current level, partially losing their upward strength. Finally, technical indicators head nowhere within negative levels, in line with absent buying interest.
In the near term, and according to the 4-hour chart, XAU/USD is neutral-to-bearish. The pair is trading just above converging 20 and 100 SMAs, with the shorter one offering a firmer downward slope, suggesting mounting selling pressure. The 200 SMA, in the meantime, remains directionless far above the shorter ones. Technical indicators suggest the bright metal may fall further as both rotated south around their mid-lines, reflecting mounting selling pressure.
Silver price tests a “throwback support” at the psychological level of $30.00.
The pair remains confined within a descending channel pattern, signaling a strong bearish bias.
A decisive break below the throwback support could drive the Silver price to approach its three-month low of $27.69.
Silver price (XAG/USD) extends its losses for the second successive day, trading around $30.00 per troy ounce during the European hours on Thursday. The daily chart analysis indicates a dominant bearish bias, with the pair consolidating within a descending channel pattern. Additionally, the 14-day Relative Strength Index (RSI) remains below the 50 mark, further supporting the bearish sentiment.
The XAG/USD pair continues to trade below the 14- and nine-day Exponential Moving Averages (EMA), reinforcing a bearish outlook and signaling weakening short-term price momentum. This points to limited buying interest and raises the likelihood of further price declines.
In terms of the upside, the Silver price finds a primary barrier around the nine-day Exponential Moving Average at $30.54, followed by the 14-day EMA at $30.78. Further resistance appears around the upper boundary of the descending channel at 31.20 level.
On the downside, the Silver price tests a “throwback support” at the psychological level of $30.00. A successful breach below this level could deepen bearish sentiment, potentially driving the asset price lower toward its three-month low of $27.69, followed by the descending channel’s lower boundary at $27.50.
XAG/USD: Daily Chart
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver price tests a “throwback support” at the psychological level of $30.00.
The pair remains confined within a descending channel pattern, signaling a strong bearish bias.
A decisive break below the throwback support could drive the Silver price to approach its three-month low of $27.69.
Silver price (XAG/USD) extends its losses for the second successive day, trading around $30.00 per troy ounce during the European hours on Thursday. The daily chart analysis indicates a dominant bearish bias, with the pair consolidating within a descending channel pattern. Additionally, the 14-day Relative Strength Index (RSI) remains below the 50 mark, further supporting the bearish sentiment.
The XAG/USD pair continues to trade below the 14- and nine-day Exponential Moving Averages (EMA), reinforcing a bearish outlook and signaling weakening short-term price momentum. This points to limited buying interest and raises the likelihood of further price declines.
In terms of the upside, the Silver price finds a primary barrier around the nine-day Exponential Moving Average at $30.54, followed by the 14-day EMA at $30.78. Further resistance appears around the upper boundary of the descending channel at 31.20 level.
On the downside, the Silver price tests a “throwback support” at the psychological level of $30.00. A successful breach below this level could deepen bearish sentiment, potentially driving the asset price lower toward its three-month low of $27.69, followed by the descending channel’s lower boundary at $27.50.
XAG/USD: Daily Chart
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver price depreciates due to safe-haven flows diminishing amid easing Middle-East tensions.
A ceasefire between Israel and the Lebanese armed group Hezbollah was successfully upheld on Wednesday.
Dollar-denominated Silver faces headwinds as an improved US Dollar increases its cost for buyers using other currencies, potentially dampening demand.
Silver price (XAG/USD) extends its losses for the second consecutive day, trading around $29.90 per troy ounce during the Asian session on Thursday. The decline in Silver prices can be attributed to safe-haven flows diminishing amid easing geopolitical tensions in the Middle East.
A ceasefire between Israel and the Lebanese armed group Hezbollah was successfully upheld on Wednesday, following a deal mediated by the United States (US) and France. This truce has allowed people in the border areas, devastated by 14 months of conflict, to begin returning to their homes. However, Israel continues its military operations against Hamas in the Gaza Strip, according to Reuters.
The price of dollar-denominated Silver has been pressured by an improved US dollar (USD) as the Federal Reserve (Fed) is likely to remain cautious about cutting interest rates following Wednesday’s robust inflation data. The report indicated solid growth in consumer spending for October, but it also highlighted a stagnation in progress toward lowering inflation, keeping the Fed on alert.
The US Personal Consumption Expenditures (PCE) Price Index increased by 2.3% year-over-year in October, up from 2.1% in September. Meanwhile, the core PCE Price Index, which excludes volatile food and energy prices, rose by 2.8%, slightly higher than the 2.7% recorded the previous month. Both figures aligned with market expectations, indicating steady inflationary pressure within the economy.
Demand of the non-yielding Silver receives downward pressure due to optimism in the bond market following the selection of Scott Bessent as US Treasury Secretary in the incoming administration. Bessent has advocated for a phased approach to trade restrictions and expressed a willingness to negotiate tariff levels in coordination with President-elect Donald Trump.
Silver traders still assess the recent Federal Open Market Committee’s (FOMC) Meeting Minutes for the policy meeting held on November 7, which indicated that policymakers are adopting a cautious stance on cutting interest rates, citing easing inflation and a robust labor market.
According to the CME FedWatch Tool, futures traders are now pricing in a 68.1% chance that the Fed will cut rates by a quarter point in December, up from 59.4%, a day ago. Nonetheless, they anticipate the Fed leaving rates unchanged at its January and March meetings.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
