Silver rose above $29.50 per ounce, recovering from the three-month low of $29 reached on December 19, as markets reassessed the level of hawkishness expected from the Federal Reserve next year.
Silver rises above $29.50 per ounce
Softer-than-expected core PCE inflation in November eased concerns about overly restrictive rate hikes, which had been fueled by hawkish projections from FOMC members, resulting in lower bond yields and supporting precious metals. However, the uncertain outlook for silver as an industrial metal kept it underperforming relative to gold.
China's impact on silver prices
Overcapacity in China’s solar panel industry led photovoltaic companies to join a government self-discipline program, which may regulate supply and limit silver demand in this sector. Additionally, concerns about a potential yuan devaluation linked to China’s more relaxed monetary policy added pressure, lowering prices from the world’s top exporter.
