Silver Prices Plummet Globally Amid Weakening Economic Expectations
Silver prices ended the session on July 25 with a simultaneous decline in both domestic and world markets, marking the last trading day of the week.
According to various websites tracking silver prices at domestic trading units, the current price is under downward pressure. The global silver price as of 7:15 PM was listed at $58.03 per ounce, down $0.23 from the previous day's closing price.
The recent fluctuations in silver prices have been influenced by several factors, including the strength of the US dollar, US bond yields, monetary policy decisions by the Federal Reserve (Fed), and geopolitical tensions. The slight decrease in 10-year US government bond yields has created conditions for gold and silver to recover slightly, but the USD still maintains its recent highs.
Additionally, data on business activity, housing, and the US labor market indicate that the economy has not weakened significantly, reducing expectations of the Fed's ability to ease monetary policy soon. This limits the upward room for precious metals like gold and silver.
The technical analysis suggests that the 59.23 USD/ounce zone is a crucial resistance level. If silver prices surpass this level and maintain it above, the metal may head towards the $60 per ounce zone. Conversely, if it loses the 56.98 USD mark, selling pressure may push the price down.
The coming sessions are likely to remain volatile for silver prices, largely dependent on the Fed's decision, GDP data, US PCE inflation, and developments on key oil transport routes.