Silver Daily Forecast – Silver Falls to 11-Year Low

Silver has lost ground on Wednesday. Currently, silver is trading at $12.08, down $0.56 or 4.01% on the day.

The trading week started with ‘Black Monday’, as the equity markets suffered there worst one-day loss since the 1987 crash. Silver was not spared from the financial carnage, as the metal plunged 12.2 percent. The slide has continued, as silver has fallen 17.9% in the month of March.

Fed, Trump to the Rescue?

The Trump Administration has unveiled plans to boost the economy with a massive stimulus package, which is estimated at some $1 trillion. The package is expected to include direct payments, deferred payments and tax breaks. The plan will require Congressional approval, and Treasury Secretary Mnuchin warned that if the package is not approved, unemployment could skyrocket as high as 20 percent.

U.S. stock markets reacted positively to the news on Tuesday, with silver posting only slight losses after its huge decline on Monday. Silver has given up more ground on Wednesday and has touched a daily low of 11.69, its lowest level since January 2009. The outlook for silver remains grim, as economic growth is at a standstill, which means little industrial demand for silver.

The Federal Reserve has slashed rates to a range between zero and 0.25%, in a move coordinated with other major central banks. On Tuesday, the Fed announced it was establishing a Commercial Paper Funding Facility, in order to keep credit flowing to the economy. Investors are hopeful that this move will ease pressure in the commercial paper market and lower the volatility which has engulfed the financial markets.