Introduction:
Silver prices have been on a steady decline lately, experiencing selling pressure on the last day of the week. This trend continued in the European session, as the white metal slipped below the $25.00 psychological mark. In this article, we will delve deeper into this situation and provide you with the latest updates on silver prices.
Silver Prices Slip Below $25 Amidst Selling Pressure in European Session
The steady decline of silver prices is causing concern among investors as the white metal slipped below the $25.00 psychological mark on the last day of the week. This decline is mainly due to selling pressure in the European session, which has extended through the first half of the day.
The 100-period Simple Moving Average (SMA) on the 4-hour chart has managed to hold its neck above the silver prices. However, this support level might not last long, as the market continues to experience selling pressure.
This selling pressure is caused by a variety of factors, including the strength of the US dollar, which has been on an upward trend lately. The increase in the dollar’s value has made commodities like silver more expensive for buyers who use other currencies, leading to a decline in demand.
Furthermore, the rise in bond yields has also contributed to the decline in silver prices. As bond yields increase, investors tend to shift their investments towards bonds, which offer higher returns, leaving commodities like silver behind.
However, it is important to note that the decline in silver prices might be temporary. There are several factors that could potentially reverse the current trend and bring silver prices back up.
One of these factors is the increase in industrial demand for silver. The white metal is widely used in various industries, including electronics, medical equipment, and solar panels. With the global economy recovering from the pandemic, the demand for silver in these industries is expected to increase, potentially boosting silver prices.
Another factor that could positively impact silver prices is the current geopolitical tensions between the US and China. If these tensions escalate, investors might shift their investments towards safe-haven assets like silver, leading to an increase in demand and prices.
In conclusion, the decline in silver prices amidst selling pressure in the European session is concerning for investors. However, it is important to keep in mind that this decline might be temporary, as there are several factors that could potentially reverse the trend and bring silver prices back up. As always, investors should keep a close eye on market developments and adjust their investment strategies accordingly.