Silver prices slipped below $32.50 per ounce on Monday as weak economic data from China dampened investor sentiment, raising concerns over demand for industrial metals. The decline comes amid broader market uncertainty, with traders reassessing global growth prospects and the Federal Reserve’s policy outlook.
China, the world’s largest consumer of silver for both industrial and investment purposes, reported weaker-than-expected manufacturing and trade figures, fueling worries about a slowdown in demand. Investors reacted swiftly, pulling back from the metal, which had recently benefited from a surge in safe-haven buying. The latest data has reinforced fears that China’s economic recovery remains fragile, despite efforts by policymakers to support growth.
The downturn in silver also reflects broader pressure across commodity markets. Industrial metals, including copper and aluminum, saw losses as traders recalibrated expectations for global demand. The US dollar’s recent strength added to the selling pressure, making silver more expensive for overseas buyers and further weighing on prices.
Market analysts note that while silver has faced short-term headwinds, long-term fundamentals remain intact. Demand from the green energy sector and industrial applications, particularly in solar panel production, continues to provide support. However, with macroeconomic uncertainty still clouding the outlook, traders are treading cautiously, keeping a close eye on further economic indicators from major economies.
Investors are now looking ahead to key US economic data releases, including inflation reports and Federal Reserve comments, which could influence sentiment on interest rates and the broader commodity market. A more hawkish Fed stance could pressure silver further, while any dovish signals may provide a floor for prices.
For now, silver remains under pressure, with China’s economic struggles casting a shadow over the market. As traders weigh the latest developments, volatility is expected to persist in the near term, with any signs of economic stabilization likely to play a crucial role in shaping silver’s next move.
