Sharp decline in silver prices: Two-month gains wiped out and the $60 threshold is being watched
Spot silver dropped to $61.27 while gram silver fell to 96.70 liras. Markets are locked on the $60 support and US non-farm payrolls data.
Testing record levels, spot silver fell to $61.27 amid intense selling pressure, while gram silver dropped to 96.70 liras, erasing a significant portion of the gains from the past two months.
Current status in silver and the $60 threshold
While spot silver dropped down to $61.27 due to heavy sell-offs, gram silver fell to 96.70 liras after exceeding 107 liras. In the markets, all eyes have turned to the critical $60 level.
According to analysts' evaluations, silver finding support at this level could pave the way for a new upward movement, whereas in a scenario below $60, around $55 is being monitored as support.
Causes of the decline in silver prices
Concerns that tensions in the Middle East could drive up oil prices and create inflationary pressure are weighing on precious metals. Hawkish messages from the Fed and a strengthening dollar are also supporting this process.
BMO analysts' expectation revisions
Due to short-term risks, BMO analysts lowered their average fourth-quarter silver price expectation from $71.40 to $67.40, and their first-quarter expectation to $69.30.
On the other hand, the bank raised its long-term average silver price forecast from $36 to $47, stating that Chinese producers shifting toward alternative metals could affect demand.
Major banks' year-end forecasts
Year-end silver price expectations among institutions stand in the range of $110 for Citigroup, $100 for Bank of America, and $85-$100 for Goldman Sachs.
Additionally, UBS shares estimates at $70-$80, JPMorgan at $63, and Commerzbank at $59-$67 levels.
US employment data and expectations
All eyes in the silver market are now turned to the US September non-farm payrolls data. Economists expect employment growth to decline from 162,000 to 90,000.