Silver fell more than 4% on October 8, 2024. Silver lost exactly 9.0% between the day’s high on Friday, October 4, 2024. What’s happening to silver?
In this article we look at silver in different ways:
- We compare silver’s current decline against other major markets and assets.
- We look at the silver card.
- 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.
October 9, 2024 – During overnight trading it became clear why silver fell by almost 10% between October 4 and 8: The Chinese market crash has dragged down commodities. Scroll down to see the silver chart, as well as the Chinese news that pushed silver lower. We conclude this article by asking whether we are concerned about silver.
Silver down on October 7 and 8, 2024
First of all, can we put silver’s decline into perspective?
Below you will find the market carpet for October 8, 2024.
Remark – this is a snapshot and taken during pre-market trading on futures markets (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 a similar rate 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 Commodities such as metals and oil may face headwinds, a kind of sector-wide effect.
Silver chart – silver down after resistance
When looking at the silver chart, it is clear that silver encountered major resistance two trading days ago.
On Friday, October 4, 2024, silver doubled at $33.3/oz in silver futures at the top right (a slightly lower value in spot silver).
Another explanation why silver decreases in value 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 silver is falling today, October 8, 2024.
If we look more broadly and include gold, we see some news emerging:
It appears that a drop in commodity prices occurred on October 8, 2024, as Chinese officials refused to further stimulate their economy. This sector-wide weakness in commodities also affected silver.
This could 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 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.’