The price of silver has been higher over the last two days, but the bounce has been weak so far.
XAGUSD has bounced from the $28.67 level but was initially weak, moving to $29.28. A move above $30 would be needed to reignite the bull move, but there is a risk of a drop to the downtrend line around $28.
Silver saw sharp losses for four days alongside other commodities with US dollar strength. The price of the precious metal has risen this year on signs of demand weakness in China, the world’s top consumer.
Elsewhere, India lowered its import duties on gold and silver from 15% to 6% to support jewellery manufacturing, raising the outlook for demand in the world’s second-largest bullion consumer. US PMI figures for July will be released on Wednesday, with second-quarter GDP figures set to follow on Thursday, alongside the latest PCE price report on Friday.
Both data sets will be an essential driver for the US dollar, impacting metals and other commodities—China’s slower-than-expected economic growth of 4.7% hurt commodity markets over the last week.
Geopolitical concerns have also driven safe-haven metals buying. However, a potential ceasefire in the Middle East has hurt the outlook. Donald Trump has also spoken to Ukrainian President Zelensky about bringing peace to the conflict with Russia.
This week’s economic data will be necessary for metals. A delay in interest rate cuts in the United States will hurt the demand for non-yielding assets such as crypto or bullion. That will determine whether silver prices can hold the low of the trading range that started in June.
