Silver Steadies after Mini-SlideSilver prices are steady on Wednesday, as the markets appear to have put the U.S.-Iran crisis in the rearview mirror. If risk appetite remains firm, silver could lose more ground.
Silver has leveled off on Wednesday, after posting losses in the previous two sessions. Currently, silver is trading at $17.84, up $0.04 or 0.26% on the day.
Risk Appetite Weighs on Silver
The spike in silver prices last week, which pushed the metal to a 4-month high, proved to be a temporary move, as silver prices were unable to consolidate these gains. Tensions between the U.S. and Iran provided the catalyst for the jump in silver prices; however, as the conflict quickly de-escalated, risk appetite rebounded. This has sent safe-haven assets lower and silver has fallen back below the $18.00 level. Global stock markets continue to rally, at the expense of safe-haven assets.
On Tuesday, silver dropped as low as $17.68, its lowest level since December 24. If there are no further flare-ups between the U.S. and Iran and risk apprehension remains low, we could see silver resume its downward movement.
CPI Dips, Retail Sales Next
The U.S. economy continues to perform well, but inflation remains below the Federal Reserve target of 2.0 percent. Consumer inflation has been losing ground and the downturn continued in December. CPI slowed to 0.2%, compared to 0.3% a month earlier. Consumer spending will be in the spotlight on Thursday, with the release of retail sales, the primary gauge of consumer spending. Retail sales are expected to improve to 0.3%, while core retail sales are projected to jump by 0.5%.