Silver price depreciates as the slowing Chinese economy could negatively impact the industrial demand for the asset.
The grey metal may limit its downside as challenges in mining production could lead to tighter supplies.
The rising odds of the Fed reducing rates could support the demand for non-yielding assets like Silver.
Silver price (XAG/USD) continues its losing streak for the fourth consecutive day, trading around $29.20 per troy ounce during the Asian hours on Monday. The grey metal faces challenges due to a slowing Chinese economy, the world's largest manufacturing hub. China's industrial demand for Silver is significant, as it is essential in various applications such as electronics, solar panels, and automotive components.
However, Silver could limit its downside as supply could fail to keep pace. “Mining production has been affected by labor shortages and environmental regulations, leading to tighter supplies. According to the Silver Institute’s estimates, 2024 is expected to be the fourth consecutive year of a supply deficit, Business Standard cited Navneet Damani, group senior vice-president, head of commodities research, Motilal Oswal Financial Services.
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