Silver Price Outlook – September 2023

“Following the rise in prices during the second half of August, silver prices could see a brief period of weakness during September. Several factors support this possibility, including the removal of support for prices following the completion of the September Comex contact roll. Prices have strong support at the $22 level. Prices could test these levels in the coming weeks, however. If economic growth remains stronger than expected, a break below $22 cannot be ruled out, with next support around $20.80. Silver prices are expected to follow gold prices higher during the last quarter of the year, with initial resistance for prices at $26.20.

If global economic growth begins to lose momentum, as is expected, it could act as a headwind to silver prices because this typically hurts fabrication demand. That said, silver demand from the solar panel industry has shown itself to be less sensitive to economic cycles, in part because of various governments’ efforts to push for greener sources of energy. This will help blunt some of the negative impact of slower economic growth on silver fabrication demand. Additionally, investment demand, which would benefit from any sort of weakness in economic growth, is more important to silver prices and should help to provide support to prices.”