Silver prices dipped below $31.7 per ounce on Wednesday, lagging behind other precious metals amid uncertainty about Chinese industrial demand and weaker currencies in major silver-exporting nations.
Silver dips amid Chinese uncertainty
Reports suggested that Beijing may devalue the yuan to counter U.S. tariff threats, aligning with its commitment to looser monetary policy and making Chinese exports more competitive globally. However, doubts about the effectiveness of China's promised economic support in boosting industrial demand weighed on market sentiment. Additionally, oversupply concerns in China's solar panel sector prompted photovoltaic firms to join a government-led self-discipline initiative, potentially capping silver demand for solar manufacturing.
Eyes on the Fed
Meanwhile, the U.S. Federal Reserve is expected to cut interest rates by 25 basis points at its final meeting of the year, reducing the opportunity cost of holding non-yielding bullion assets.
