The impetus in the precious metal market is decreasing, which is causing silver to continue its downward trend. Price pressure is exerted downward as a result of the appreciation of the dollar, which coincides with a background of various economic indications coming from the United States. Participants in the market are anticipating that the Federal Reserve will keep interest rates at their current level in the not too distant future. Because of the existence of geopolitical uncertainty, there is an increased fundamental demand for assets that provide a safe haven. It is the combination of supply constraints and high industrial demand that keeps prices at their current elevated levels.

The price of silver has dropped below $77 per ounce, continuing the negative trend that was witnessed in the previous session. This is due to the fact that the previously strong positive momentum in precious metals has lessened as a result of recent record-high performances. While the various economic statistics from the United States gave little clarity on the Federal Reserve’s approaching policy trajectory, the strengthening of the United States currency imposed downward pressure on pricing.

During the upcoming meeting of the Federal Reserve, the majority of the financial markets are forecasting that interest rates will remain unchanged. On the other hand, the outlook for several rate decreases later in the year is still being maintained. A demand for safe-haven assets is consistently supported by geopolitical factors, such as the participation of the United States in Venezuela and the escalation of tensions between China and Japan.

Silver continues to be supported by tight supply dynamics, continuous industrial demand, and substantial investment inflows, particularly in light of the recent drop. This is despite the fact that silver is hovering near its historical heights.