Silver Prices Slip Amid Holiday-Thinned Trading Volumes
Silver prices declined by over 1% on Monday, retreating to around $76 per ounce after reversing gains made in the previous trading session. The market activity was notably subdued, influenced by holiday closures in key markets including the United States and China.
Earlier last week, silver had experienced a significant upward move, rising nearly 3% on Friday. This rally was driven by softer-than-expected US inflation data, which strengthened market expectations that the Federal Reserve may reduce interest rates later this year. Currently, traders are pricing in a high probability of a Fed rate cut occurring as early as June, with July also considered a likely timeframe.
Market participants are now eyeing upcoming economic releases for further clues on the US monetary policy direction. Specifically, the Federal Reserve’s meeting minutes and the core Personal Consumption Expenditures (PCE) price index report—a preferred inflation gauge of the Fed—are awaited closely for insights into future rate decisions.
Meanwhile, mainland China’s markets remain closed this week in observance of the Lunar New Year holiday. Chinese investors had been a driving force behind recent speculative surges in precious metals, which prompted regulatory authorities to introduce measures aimed at mitigating market risks. The metals’ prices reflected this dynamic, with silver previously peaking above $120 per ounce in late January before a subsequent decline to approximately $64 earlier this month following a reversal in market sentiment.
The ongoing combination of macroeconomic data releases and geopolitical factors, coupled with holiday-thinned trading, continues to shape the silver market’s performance in this volatile period. Traders and investors are advised to monitor upcoming US economic indicators and reopening of key Asian markets for renewed momentum in silver pricing.
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