Silver prices fell to around $30.2 per ounce on Monday, reversing some of the gains made last week, as the dollar strengthened following stronger-than-expected US jobs data.
Silver dips as dollar strengthens, demand holds
This report dampened expectations for further interest rate cuts by the Federal Reserve in 2025, and the rising dollar made dollar-denominated commodities like silver more expensive for buyers using other currencies, reducing demand. As investors look ahead, US inflation data this week will be closely watched for further clues on the Fed's policy direction. Silver gained nearly 3% last week despite this pullback, marking its best weekly performance since mid-November.
Silver boosted by industrial demand and supply worries
Robust industrial demand, particularly in renewable energy technologies and electronics, and ongoing concerns about supply shortages continue to support the metal's value. Additionally, the broader economic outlook and geopolitical tensions may play a role in silver's price dynamics in the coming weeks.
