Today’s market analysis on behalf of Bas Kooijman, CEO and Asset Manager, DHF Capital S.A
Silver continued to trade near the USD 80 level as competing forces could keep the metal range-bound. While a temporary pullback in oil prices weighed on yields yesterday, crude has rebounded since, reviving inflation concerns. This dynamic could lift yields again and act as a headwind for non-yielding assets such as silver. Investment flows also reflected a more cautious tone. Silver-backed ETFs recorded a decline in holdings last week.
From a structural perspective, silver remains supported by expectations of a sixth consecutive annual supply deficit, which could help cushion the downside risks and provide a floor to prices over the long-term.
Looking ahead, attention turns to the Federal Reserve decision. While rates are expected to remain unchanged, forward guidance, comments, and economic projections will be critical. A cautious stance, especially in light of Middle East tensions and their impact on oil prices, could push yields higher and limit silver’s near-term upside potential.
