Jakarta, CNBC Indonesia – World silver prices slipped in day trading on investors’ profit-taking.
On Tuesday (2/8/2022) at 14.00 WIB, the world silver price on the spot market was recorded at US$ 20.24 per ounce, down 0.44% compared to yesterday’s closing price.
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ara investors start to take profits. This is natural because precious metal assets have been rallying in price for 5 trading days.
Nevertheless, the opportunity for silver prices to strengthen is still wide open, supported by pessimistic economic conditions and the weakening US dollar.
Manufacturing activity in the United States (US) and China, the world’s largest economies, was sluggish.
US manufacturing activity reflected in the Purchasing Manager’s Index (PMI) in July fell to 52.8, according to the Institute for Supply Management (ISM). This is the lowest since June 2020. The figure is also down from June’s level of 53.
While in China also accelerated more slowly in the last month. The manufacturing PMI released by Caixin/Markit fell to 50.4 in July from 51.7 in the previous month. The figure was well below analyst expectations for a slight decline to 51.5.
This is an indication of a slowing economic outlook.
When the economy slows down, assets safe haven investors will look back to secure the value of their assets.
Silver prices are also supported by the position of the US dollar which is far below its peak.
Currently the Dollar Index (which measures greenback compared to six other currencies) was at 105.45. The figure is far from its peak at the level of 108.
A lower dollar is a positive sentiment for silver which is priced at the greenback. Because it becomes cheaper for holders of other currencies. Demand goes up, prices follow.
CNBC INDONESIA RESEARCH TEAM
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