Despite the pullback, analysts suggest that political uncertainty could ultimately support silver, a traditional safe haven, as investors look for stability in volatile times.
Chinese stimulus expectations make the silver market more complex
In China, rising expectations for stimulus measures could boost silver demand, especially as the National People’s Congress (NPC) meets from November 4 to 8.
“Investors are closely watching all NPC announcements as additional stimulus could significantly impact industrial demand for silver,” notes Xiao Chen, an analyst at Huatai Futures.
China’s substantial role in global manufacturing underlines its influence on silver demand, and any major economic support packages could serve to stabilize prices.
Opportunities amid market and seasonal demand
While silver faces short-term headwinds, the current price decline presents opportunities for buyers. As the wedding season approaches in countries like India and Pakistan, the demand for silver jewelry traditionally increases, providing an additional boost.
According to market experts, this seasonal demand could help offset some of the expected volatility from the US elections and Federal Reserve announcements.