Silver Under Pressure, Is the Bullish Momentum Starting to Fade?
Silver prices came under pressure again at the start of the week as global market sentiment remained cautious. Market participants reduced exposure to riskier assets after the global economic outlook was deemed weak, while uncertainty regarding major central bank interest rate policies also curbed buying interest in the precious metal. Silver, which typically moves in the direction of gold but is characterized by higher volatility, became more sensitive to these changes in sentiment.
Furthermore, the mild strengthening of the US dollar at the start of the week also weighed on silver prices. A stronger dollar makes precious metals more expensive for international buyers, thus suppressing demand. At the same time, stable but still high US bond yields reduced the appeal of non-yielding assets like silver.
From the industrial perspective, the market is also monitoring the potential for a slowdown in physical demand from the manufacturing and solar energy sectors, two of silver's largest consumers. If the global economic outlook worsens, industrial demand could weaken further, making it difficult for silver bulls to develop. This combination of factors has kept silver prices under fundamental pressure, despite occasional attempts at a technical rebound. (az)
Source: Newsmaker.id
