Slow Week For Silver As Standard Bank Reiterates Bearish Outlook

Slow Week for Silver as Standard Bank Reiterates Bearish Outlook

Though silver rose to nearly $22.50 per ounce midway through the week, like last week, the white metal ultimately finished Thursday not far from its Monday opening price.

Early on Monday, silver was sitting at $21.66, "held in check by residual fears of slowing in the global economy," according to Capital Trading Group's report for the day. However, it wasn't long before the precious metal started rising — by mid-morning it had hit $22.27, and by the end of the day was at $22.39.

Tuesday, silver traded between $22.25 and $22.48, its high point for the week. Its main driving force, according to Capital Trading Group, was "rising safe haven interest off the US government shutdown." The firm suggested that as a result, "hints of a deal or progress in the talks could undermine prices."

But the next day, silver prices were instead pushed down by another factor: news that in September, Indiaapurchased just $800 million worth ofagoldaand silver, down from $4.6 billion a year ago, according to Bloomberg. By noon on Wednesday, the white metal had sunk to $21.87, showing little reaction to US President Barack Obama's nomination of Janet Yellen as Federal Reserve chairman. Though silver managed to stay steady for the remainder of that day, and even rallied briefly to $22.08 on Thursday morning, it was not able to maintain that price level and closed today at $21.68 per ounce.

Moving forward, the outlook for silver is not particularly uplifting, at least in Standard Bank's opinion. The firm said on Monday thatait remains bearish on silver, noting that it believes the white metal will still trade below $20 per ounce for "short bouts" this year. It also maintains that silver's "underlying demand/supply fundamentals remain weak and that inventory is abundant."