empty
 
 

Forex Analysis & Reviews: Silver prices are likely to fall at the end of the year
time 07.10.2022 12:27 PM
time Relevance up to, 10.10.2022 09:07 AM

This image is no longer relevant

Although silver has already fallen below $21 an ounce, prices will continue to drop until the end of the year as investment demand will continue to weigh on the metal due to physical demand not being enough to counter weak investor interest.

This image is no longer relevant

Metals Focus said the short rally observed earlier in the week was driven by a change in interest rate expectations following disappointing economic data that showed weakening momentum in the US labor market. But despite the weak investment demand for silver, there is strong global demand for physical commodities.

The Indian physical silver market has been exceptionally strong this year, with imports totaling 6,239 tons. Economists say this is the third highest figure on record, and with the upcoming holiday and bridal season, there is a huge chance that imports will hit a new high, eclipsing the 2015 record of 7530t.

There is also an insatiable appetite for the physical metal as silver in London vaults fell to its lowest level on record since 2016. Silver held in Comex warehouses is also at 313 million ounces, the lowest level since June 2020. This indicates that the market may face another significant supply shortage in 2022.

However, as said earlier, prices of silver are decreasing even though supply is depleting.

This image is no longer relevant

Rising interest rates and a stronger US dollar are the two factors that keep investors away from silver.

Metals Focus said real interest rates has risen to 1.7% in September, after starting the year at -1%. This contributed to a sharp rise in dollar, pushing it up by 19%. And even though bond yields have fallen from last month's highs, they are still elevated in anticipation of further rate hikes by the Fed.

Although rate expectations have been lowered, further tightening is expected both this year and in 2023. As a result, there is speculation that silver prices will face new selling pressure towards the end of the year, which is likely to continue until 2023 despite an increasingly favorable supply and demand environment.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2023
Silver
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

InstaForex分析评论将让您充分了解市场趋势! 作为InstaForex的客户,您将获得大量的免费服务以实现有效的交易。

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $10000 more!
    In January we raffle $10000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

EUR/USD. Preview of the week. Hot days of February

In the coming days, the Fed and the ECB will hold their first meetings of 2023 and the results will cause increased volatility in all dollar pairs. The EUR/USD will

Irina Manzenko 16:03 2023-01-29 UTC+2

EUR/USD. Results of the week. The scales remained in balance

Last week, key macro data could not tip the scales in either direction. Initially, bulls took the initiative, which renewed the 9-month high. Then bears took the initiative and pulled

Irina Manzenko 15:27 2023-01-29 UTC+2

GBP/USD. Overview for January 29. The week of judgment for the British pound.

On Friday, the GBP/USD currency pair remained very close to its regional peak of 1.2451. The price made two unsuccessful attempts to break through this barrier. Following the initial bounce

Paolo Greco 13:26 2023-01-29 UTC+2

EUR/USD. Overview for January 29. The upcoming week is crucial for both the dollar and the euro.

The EUR/USD currency pair finished the week exactly as it had begun. Another ineffective attempt to correct, a further drop in the moving average, which has been closely related

Paolo Greco 13:13 2023-01-29 UTC+2

Britain is going through a difficult period.

What conclusions can we draw now that another week on the foreign currency market has come to an end? Unfortunately, there aren't many conclusions because this week, particularly

Chin Zhao 12:53 2023-01-29 UTC+2

GBP/USD. Analysis of the trading week of January 23-27. COT report. The British pound is again aiming for growth.

Over the previous week, the GBP/USD currency pair has traded more sideways than up or down, but overall it has maintained an upward trend. As a result, there has been

Paolo Greco 11:49 2023-01-29 UTC+2

EUR/USD. Analysis of the trading week of January 23–27. COT report. The euro remains at peak levels ahead of the ECB and Fed meetings.

Following a correction to the crucial level, the EUR/USD currency pair resumed its ascent over the current week. Since the present technical disposition is most readily apparent on the 24-hour

Paolo Greco 11:37 2023-01-29 UTC+2

ECB rates to peak longer than Fed rates, pushing EURUSD above 1.2

Forex is a place where questions never end. In the first phase of monetary tightening, investors worry about how quickly rates will rise. Then, how high they will grow. Finally

Marek Petkovich 15:10 2023-01-27 UTC+2

Does the US debt ceiling issue pose a threat to the world economy?

Additionally, US President Joe Biden blasted the Republicans, alleging that they want to use the debt ceiling as leverage in economic negotiations, as the markets were getting ready

Jakub Novak 12:11 2023-01-27 UTC+2

The euro has a good chance

According to a survey of analysts, the European Central Bank's decision to raise interest rates by 50 basis points is already final, so the euro has a high probability

Jakub Novak 12:01 2023-01-27 UTC+2
现在无法通话?
提出您的问题,用 在线帮助.