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Silver Steadied As Investors Reduced Their Expectations For Rate Cuts This Year.
Silver closed marginally lower by -0.04%, settling at 72218, as economic uncertainties and cautious sentiment surrounding interest rates restrained investor demand. Federal Reserve Chair Jerome Powell indicated that the central bank is unlikely to cut rates in March, citing concerns about having sufficient confidence in inflation data.
The U.S. labor market’s apparent loss of momentum, with an increase in first-time unemployment benefit applications to 224,000, added to the cautious outlook. Globally, the silver market is expected to experience a 9% reduction in the deficit to 176 million troy ounces in 2024. A projected 4% recovery in mine output is anticipated to counterbalance the rising demand for silver. Despite facing a fourth consecutive year of a structural market deficit, the Silver Institute predicts a 1% increase in global demand to 1.2 billion ounces in 2024, mainly due to stronger industrial consumption. On the supply side, global silver supply is forecasted to grow by 3% to reach an eight-year high of 1.02 billion ounces in 2024. This growth is led by a 4% increase in mine production, even though silver recycling is expected to decline by 3%.
