Citing research from CPM Group, Bloomberg reports silver demand from solar panel producers is expected to surge this year while silver jewelry demand should rise by over 4%. Still, silver has been weak. So weak in fact that some technical analysts are forecasting a decline to $15 for the white metal, which would be more than 16% below SLV’s Monday closing price.
The strong dollar is, predictably, hampering precious metals prices. The PowerShares DB US Dollar Index Bullish Fund (NYSEArca: UUP) is up nearly 3% in the past month and resides near its highest levels in 14 months. With the recent spate of weakness in the euro, yen and other global currencies, UUP could continue to shine, pressuring precious metals in the process. [Commodities Pain, Dollar Gain]
iShares Silver Trust
ETF Trends editorial team contributed to this article. Tom Lydon’s clients own shares of GLD.