Silver fell back below $31 per ounce on Wednesday, struggling to build on recent momentum as investors continued to assess prospects for US interest rate cuts and awaited updates from China's ongoing Third Plenum.
The official messaging from the Third Plenum has so far signaled no major changes in top consumer China''s economic strategy despite growing challenges on both the domestic and international fronts. President Xi Jinping urged the Communist Party to maintain "unwavering faith and commitment" to his strategic agenda even as analysts cut China's growth forecasts. Meanwhile, Federal Reserve Chair Jerome Powell said on Monday that recent data "add somewhat to confidence" that inflation is returning to target and that the central bank will not wait until inflation hits 2% before cutting rates.
Elsewhere, analysts are suggesting that silver could push higher on expectations of a wider supply deficit in 2024 which is likely to be the fifth consecutive year of shortfall.
Source: Trading Economics
