Silver futures decline for 3rd time in 4 sessions as dollar climbs.
Silver futures fell for the third time in four sessions on Friday, tracking toward their eighth down week in the past 12 and a 30.5% decline over that period. During the session, prices reached a high of $50.725 before dropping to $48.835, putting the contract on pace for its lowest close in more than 13 months. Market projections indicate a 35 million ounce silver deficit this year—the sixth consecutive shortfall, though smaller than last year's—as total demand is forecast to decrease 5% alongside a 21% drop in solar demand. Meanwhile, monthly producer prices rose 0.3%, slightly below the 0.4% expectation. A stronger U.S. dollar, higher longer-term Treasury yields and expectations for a December Fed rate hike added further pressure ahead of next week's Fed minutes and Monday's testimony from Kevin Warsh.
Silver futures fell for the third time in four sessions on Friday, tracking toward their eighth down week in the past 12 and a 30.5% decline over that period. During the session, prices reached a high of $50.725 before dropping to $48.835, putting the contract on pace for its lowest close in more than 13 months. Market projections indicate a 35 million ounce silver deficit this year—the sixth consecutive shortfall, though smaller than last year's—as total demand is forecast to decrease 5% alongside a 21% drop in solar demand. Meanwhile, monthly producer prices rose 0.3%, slightly below the 0.4% expectation.
A stronger U.S. dollar, higher longer-term Treasury yields and expectations for a December Fed rate hike added further pressure ahead of next week's Fed minutes and Monday's testimony from Kevin Warsh.