Silver prices took a tumble this week, falling below the $20 point. Monday saw silver open around $19.70 per ounce, and hover in the mid-$19 range all week. If gold should hit $1,360, silver is expected to rebound well above $20 per ounce.
Gold and silver are intertwined in a waiting game for news from the Federal Reserve, and the summer months tend to see sales volume dwindle until the next buying season. Silver is consolidating in a relatively small price range without much movement.
One thing that makes silver different from gold is its high demand in the industrial sectors of the economy. As India and China continue to prosper, it is expected that more silver will be needed for inclusion in smartphones. Demand is expected to remain ahead of supply.
Silver, like gold, took a dip mid-week on after the Federal Reserve’s July minutes indicated a slightly hawkish stance on raising rates, though no clear path forward was determined.
The dollar, while weaker earlier in the week, consolidated on Friday, pushing gold and silver prices down. Precious metals trading is expected to remain quiet until after the Labor Day holiday. Silver closed out the week around $19.25 per ounce.