Commodities
Home›Commodities›Precious Metals›Silver’s rebound fades below $60 as dollar strength ca…
Silver’s rebound fades below $60 as dollar strength caps gains
Silver remains confined to its recent range after CPI offered less dollar-driven tailwind than in prior episodes, and industrial demand challenges persist amid a long supply deficit.
Silver’s attempt to rebound stalled after the metal slipped back below the $60 level, as market participants kept a bearish near-term view while buying interest stayed subdued, according to Action Forex.
The outlet said the macro setup has been less supportive than investors typically expect after weaker US inflation. It noted that after a softer-than-expected June CPI report, the Dollar Index decline proved shallow and uneven, with the currency recovering after Federal Reserve Chair Kevin Warsh reiterated the Fed’s commitment to price stability without signaling dovish policy during congressional testimony.
Action Forex attributed the lack of broad dollar weakness to shifting currency moves that were concentrated in a few countries, including the Canadian dollar, supported by stronger oil prices and a more hawkish Bank of Canada outlook, and the New Zealand dollar after comments from RBNZ Chief Economist Paul Conway.
Beyond the near-term currency backdrop, the article pointed to structural headwinds from industrial demand and supply dynamics. It said silver is in its sixth consecutive annual supply deficit, but because about 70% of global silver production comes as a by-product of copper, lead, and zinc mining, output depends more on those base metals, while new mine development can take seven to ten years.
Latest closeSilver $59.08 ▲2.5%|Copper $6.367 ▲2.1%|Dollar index 100.94 ▼0.3%