Silver Slips Below $45, US Dollar Strengthens
Silver prices weakened below $45 per ounce in Friday trading, retreating from a 14-year high. The strengthening US dollar following the release of solid economic data weighed on the precious metal, while also dampening speculation of a more aggressive Fed interest rate cut.
The latest data showed that weekly US jobless claims fell to 218,000, indicating a resilient labor market. Furthermore, second-quarter GDP growth was revised higher to 3.8% annually, the fastest pace in nearly two years. This has led the market to expect only a quarter-point interest rate cut in October, with the overall room for easing this year narrowing.
Despite the correction, silver prices still recorded a gain of around 4% this week. Strong support came from industrial demand, particularly in the solar panel and electronics sectors, where silver is difficult to substitute for other materials.
On the supply side, silver production has been unable to quickly adjust to the price surge. Disruptions at smelters and processing centers in several regions have also tightened the availability of refined silver, reducing short-term supply and driving up premiums for expedited delivery. (ads)
Source: Newsmaker.id
