Silver (XAG/USD) extends recovery. However, economists at ANZ Bank expect the precious metal to remain below the $20 level for the rest of the year.

Silver is still vulnerable

“Indian imports are hitting record high levels, while demand from the solar sector is offsetting weaker demand from the electronics sector. Nearly 50% of the increase in demand (+27Moz/y) for industrial silver this year comes from the solar sector.”

“According to the Silver Institute’s estimates, the market remains under-supplied by 75Moz this year, though we see a modest deficit of 32Moz. Nonetheless, silver is still vulnerable to any economic slowdown and gold price correction.” 

“We expect silver to trade below $20 towards the end of the year.”