The price of silver is down more than 2% today, October 8, 2024. Silver is down exactly 6.0% since its high on Friday, October 4, 2024. What’s happening to silver?
In this article we look at silver in different ways:
- We compare current silver price changes with other major markets and assets.
- We look at the silver price chart.
- We check to see if there is any silver-related news that could explain why silver fell today.
- Based on the above findings, the conclusion is that the USD is the main driver of silver’s decline.
Read on to find out why silver fell today.
Silver down on October 7 and 8, 2024
First of all, can we put the decline in silver prices into perspective?
Below you will find the market carpet for October 8, 2024.
Remark – this is a snapshot and taken during pre-market trading based on futures prices (incl. silver futures price).
Silver has fallen today and is among the strongest decliners. Interestingly, other metals (copper and palladium) and commodities (crude oil and gasoline) have fallen at similar rates to silver.
There appears to be a continued decline in commodity prices, which may not be specific to silver alone.
An explanation why silver fell today It could be that commodities like metals and oil face headwinds, a kind of sector-wide effect.
Silver chart – silver down after resistance
If you look at the silver price chart, it is clear that silver hit major resistance two trading days ago.
On Friday, October 4, 2024, the silver price doubled at the top right at 33.3 USD/oz in silver futures (a slightly lower value in spot silver).
Another explanation for why silver fell today may be related to the dynamics of the silver chart. When resistance is offered, a fall is often a likely effect.
Silver not in the news
There is no silver-specific news, and certainly no silver-specific news that could explain why the silver price is falling today, October 8, 2024.
If we look more broadly and include gold, we see some news emerging:
It appears that there are a number of macro developments affecting gold: additional interest rate cuts could slow down, the focus shifts to the Middle East, the cooling of gold purchases by central banks.
This could also help explain why silver fell.
USD bounces sharply from October 1st
Looking at one of the key indicators for silver, the US dollar, we started a sharp rebound on October 1, 2024.
One final explanation as to why silver fell today is clearly the intermarket dynamics between the USD and gold/silver.
Is our silver outlook affected?
Our silver price forecast is bullish and remains bullish.
Although this article focuses on the very short term (why did silver fall today), our overall focus is usually on the long term:
We propose to zoom out and not focus on the short time frames that obviously continually raise questions’why did silver fall today‘and’silver has fallen, what’s happening.’