The price of silver has now declined 15% in the last month as global demand for the metal remains weak.
Silver was trading as low as $64.93 U.S. per ounce in early trading on June 22, down 14.8% over the past four weeks.
The grey coloured metal serves a dual purpose. It is both a precious metal used to make jewellery and an industrial metal used as an electricity conductor.
Like gold, silver’s price has come under pressure in recent months as the Iran war has prompted a spike in inflation and raised the prospect of higher interest rates.
As a non-yielding asset, silver performs best when interest rates are lower rather than higher.
Analysts say silver has now fallen below the key support level of $65 U.S. per ounce, indicating that further price declines could be ahead.
The metal’s price has hit a one-month low after the U.S. Federal Reserve turned hawkish on interest rates and indicated that they could move higher in this year’s second half.
Overall sentiment towards metals remains weak, with prices for gold, copper, and platinum also sinking in recent months.
However, analysts say some relief could be on the way in the form of lower crude oil prices.
Brent crude, the international standard, is currently trading at $78.27 U.S. per barrel, down from more than $110 U.S. a barrel in recent months.
Lower oil prices are likely to bring overall inflation down, which would be positive for silver and other metals, say analysts.
Silver’s price reached an all-time high of $121.58 U.S. per ounce in January of this year.
