Silver fell to $31.5 per ounce
Silver fell to $31.5 per ounce, approaching the one-month low of $31.2 from November 6th as markets gauged future demand amid underwhelming stimulus from China and the higher rate outlook in the US. The Chinese government announced a package of $1.4 trillion for local governments to swap off-balance sheet debt with Beijing and improve future financing costs, but refrained from announcing new flows of stimulus to specifically target the weak consumption in the economy.
This hampered the outlook for industrial metals across all sectors, pressuring silver due to its high usage in electrification, specifically solar panels. Additionally, Chinese-owned solar panel companies reportedly started to cut production after Trump’s election victory in the US threatened higher tariffs in the sector.
Trump’s victory also pressured silver by raising the outlook on interest rates as the Fed is expected to keep borrowing costs high to offset expansionary fiscal policy in the upcoming administration.(Cay)
Source: Trading Economi