Silver Price Forecast: China’s Solar Slowdown Threatens Demand

Silver (XAG) trades near $59 an ounce and remains under pressure as the market receives mixed signals from China. Strong exports and policy support could support industrial demand. But rising factory costs and a slowdown in the solar sector increase the risks. The high bond yields also pressure silver because the metal pays no interest. In my view, silver remains vulnerable as it approaches support at $57.50. This article presents the latest developments in China, the main risks to silver prices and the key support and resistance levels to understand the next move in silver.