Bas Kooijman, CEO and Asset Manager of DHF Capital S.A
Silver prices declined for a third consecutive session on Tuesday, as investor focus shifted to recent statements from Federal Reserve officials and signs of easing US-China trade tensions.
Fed officials, including Mary Daly and Lisa Cook, emphasized a data-dependent stance ahead of the December meeting. While both expressed support for the latest 25 bps cut, they cautioned that further moves would depend on incoming economic indicators.
Investors turn their attention to the release of key data points such as ADP employment and ISM PMI, coupled with several Fed officials’ speeches, which affect sentiment and the direction of the market.
On the supply front, domestic silver production in China dropped 3.55% in October, which could help support the market to a certain extent. While the market is expected to remain in a deficit, the latter could narrow, limiting the support for the asset over a longer time span.