The price of silver is down more than 2%, today, on October 8th, 2024. Silver is down exactly 6.0% since its intraday day high on Friday, October 4th, 2024. What is happening with silver?
In this article, we look at the silver in a few different ways:
- We compare silver price changes today with other key markets and assets.
- We look at the silver price chart.
- We check if there is silver related news that might explain why silver is down today.
- Based on the above findings, the conclusion is that the USD is the primary driver of the decline in silver.
Continue reading to find out why silver is down today.
Silver down on October 7th & 8th, 2024
First things first, can we put the silver price decline in perspective?
Below is the market carpet for October 8th, 2024.
Note – this is a snapshot, and it’s taken in pre-market trading based on futures prices (incl. silver futures price).
Silver is down today, and it’s among the strongest decliners. Interestingly, other metals (copper and palladium) and commodities (crude oil and gasoline) are down to a similar extent like silver.
There seems to be a commodity decline ongoing, which might not be specific to silver only.
An explanation why silver is down today might be that commodities like metals and oil are facing headwinds, sort of a sector wide effect.
Silver chart – silver down after hitting resistance
Upon checking the silver price chart, it is clear that silver hit major resistance, two trading days ago.
On Friday, October 4th, 2024, the price of silver set a double top right at 33.3 USD/oz in silver futures (a slightly lower reading in spot silver).
Another explanation why silver is down today might be related to silver chart dynamics. When resistance is hit, a drop is very often a likely effect.
Silver not in the news
There is no particular news about silver, certainly no silver specific news that might explain why the price of silver is dropping today, on October 8th, 2024.
If we look broader, and include gold, we find some news popping up:
It looks like a few macro developments are occurring, affecting gold: additional rate cuts might slow down, focus shifts to the Middle East, central bank gold buying cooling.
This might also help explain why silver is down.
USD bounces sharply as of October 1st
As we look at one of the leading indicators for silver, the U.S. Dollar, we a sharp bounce started on Oct 1st, 2024.
A final explanation why silver is down 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.
While this article is focused on the very short term (why is silver down today), our overall focus tends to be long term:
We suggest to zoom out, and not to be focused on the short timeframes which obviously constantly bring up the question ‘why is silver down today‘ and ‘silver is down, what is happening.’
Read More: Why Is Silver Down Today?