Silver prices edged lower on Monday, following the trend set by gold, as investment demand continued to wane. The precious metal saw a decrease in investor interest, contributing to the downward pressure on its price.

Factors Influencing Silver Prices

Several factors are contributing to the reduced investment demand for silver:

• Economic Outlook: Improved economic data in some regions has lessened the appeal of safe-haven assets like silver.
• Interest Rate Expectations: Anticipation of rising interest rates can make bonds and other interest-bearing investments more attractive compared to non-yielding assets like silver.
• Dollar Strength: A stronger US dollar can also weigh on silver prices, as it makes the metal more expensive for buyers using other currencies.

Market Analysis

Analysts are closely monitoring the situation, noting that silver’s price movements are heavily influenced by both investment demand and industrial demand. While industrial demand remains relatively stable, the decline in investment demand is having a significant impact on overall price levels.

Expert Commentary

“Silver is currently facing headwinds from multiple directions,” said one market strategist. “Until we see a resurgence in investment demand or a significant boost in industrial applications, prices are likely to remain under pressure.”