Silver's Fluctuating Course: Prices Near Record Levels

Silver Market Analysis

Silver continues to display a volatile trend, approaching record levels as investors turn to profit-taking. In the previous session, silver reached an all-time high of 59.3336 dollars/ounce, experiencing a decline of 1.4 percent during the day.

ETF Inflows and Investor Interest

Last week, approximately 590 tons flowed into silver-backed Exchange Traded Funds (ETFs). This marks the strongest weekly inflow since July and indicates investors' belief that this rally will continue.

RSI Data and Market Expectations

The 14-day Relative Strength Index (RSI) for silver fluctuated around 70, with levels above 70 typically considered “overbought.” On Monday, the RSI stood at 68.5. Sydney-based investment analyst Justin Lin commented, "The current rally looks frothy, and individual investors have started to chase momentum."

Annual Performance of Silver

As of 2023, silver has more than doubled its value, outpacing the approximately 60% rise in gold. During this period, it gained momentum with expectations that the U.S. Federal Reserve would cut interest rates. Investors engaged in swap transactions are nearly certain that the Fed will implement a quarter-point cut at its final meeting of the year. Such situations are considered supportive for non-yielding precious metals.

Daily Price Status

As of 11:11 AM Singapore time, silver dropped 0.8 percent to 57.8853 dollars/ounce.