![Will Silver Price Stabilize After 18% Drop Or Not?](https://commoditysamachar.com/wp-content/uploads/2024/07/BLOG-30-1024x576.png)
Silver price fell more than four percent on Thursday. Prices fell to 11-week lows amid a gloomy outlook for the industry and increased uncertainty in the global economy. In addition, investors consolidated positions to focus on US economic data, which could provide additional information on the timing of possible rate hikes by the Federal Reserve.
The US gross domestic product (GDP) grew by 2.8 percent annually in the second quarter, according to the first estimate released on Thursday by the US Bureau of Economic Analysis.
This positive reading, which beat market expectations by 2%, follows the 1.4% growth reported in the first quarter. Other data showed that Initial Jobless Claims for the week ending July 19, reported a better-than-expected figure of 235,000.
The economic outlook for the US shows mixed signs but signals of impending disinflation make the market confident in a September cut by the Fed. Despite the pressure, bank officials remain reluctant to hastily implement cuts and maintain a data-dependent stance.
Further, Preliminary PMI readings for July showed that manufacturing activity largely turned contractionary in major economies, suggesting that the global economy may be slowing.
Demand concerns in top consumer China also continued to pressure silver prices amid a lack of concrete and forceful policy measures to boost the economy and revive the property sector.
Meanwhile, China’s central bank delivered a surprise and unscheduled cut to its one-year medium-term lending facility rate amid efforts by authorities to support the economy with monetary stimulus.
Now, focus will turn to the Personal Consumption Expenditures (PCE) Price Index data for June later today. Any further signs of cooler inflation might spur the rate cut expectation by the US Federal Reserve and could limited the losses.
Technical Outlook : Silver Price
![](https://commoditysamachar.com/wp-content/uploads/2024/07/SILVER1_2024-07-26_00-17-42.png)
Silver prices continued their sharp decline for seven days in a row. Prices fell to 80,666, the lowest since May 3, 2024, and settled at 81,331, compared to the previous day’s close of 84,894.00.
On the above chart, prices reversed from a high of 94011 and fell to 80666. As prices are trading near the all-important 80200 level, a break below will cause a panic to 79500-79300.00.
Otherwise, failure of the breakout will provide support and prices will stabilize at 80300-84000 levels in the near future.
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Commodity Samachar
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