Key Takeaways:
Silver futures prices saw significant volatility during the May 24 session, with the active contract swinging 2.01% between its high and low for the day.
COMEX data for the SI=F contract shows the price reached a high of $78.25 per ounce before falling to a low of $76.71. The session's trading volume was recorded at 2,284 contracts, a relatively light volume day which may have amplified the price swings.
The contract opened at $76.75 and ultimately settled at $76.20, marking a 0.72% decline from the opening price and a more substantial 2.6% drop from the session high. This close near the intraday low suggests that sellers controlled the market's direction into the end of the trading day.
The sharp intraday reversal brings the critical $75 per ounce support level into focus, a technical floor that has held since late April. A break below this level could signal a deeper correction for the precious metal. The price action in silver comes as gold also faced pressure, although its daily volatility was more contained at around 1.2%. The gold-to-silver ratio, a key metric for precious metals traders, ticked higher to 85.5, indicating relative weakness in silver.
Traders are now looking ahead to the upcoming US Consumer Price Index (CPI) data, which is a primary catalyst for precious metals. A higher-than-expected inflation reading could increase bets on a more hawkish Federal Reserve, potentially strengthening the US dollar and creating headwinds for dollar-denominated assets like silver. Conversely, a soft inflation print could reignite hopes for a less aggressive monetary policy, which would likely support silver prices.
This article is for informational purposes only and does not constitute investment advice.
