Silver prices established a fresh yearly low today, continuing a stretch of sharp selling pressures after the symmetrical triangle noted last week gave way. These are the lowest levels seen since July 2020, and there’s little reason to think that the worst is over yet.
It remains the case that fundamental headwinds remain significant. The ongoing rise in US real yields – nominal US Treasury yields less US inflation expectations (as measured by breakevens and inflation swap forwards) – coupled with global recession concerns has curated a difficult environment for silver prices. Accordingly, nothing has changed: the “weak fundamental narrative for silver prices underpins a still-weak technical outlook.”
