Silver rose 0.16% to 89,327 amid short covering after losses as the dollar index rose above 105.8, its highest level in more than four months. This forecast of high inflation could be contained by the Federal Reserve to cut interest rates and promote safe-haven assets like silver. The global structural deficit in the silver market still exists, and it is forecast to shrink by 4% to 182 million ounces in 2024. A slight 2% increase in supply is expected to offset a 1% increase in demand.
According to the Silver Institute, demand is expected to reach 1.21 billion ounces in 2024, however, the demand for fixed investment will fall by 16%. The world’s largest consumer of silver, India, has increased imports; In the first half of 2024, 4,554 metric tons were imported, increasing year-on-year.
