China's National Bureau of Statistics reported 4.5% year-over-year industrial output growth for July. This figure slowed from June and missed analyst expectations of a 4.8% rise. Retail sales grew 0.6%, significantly trailing the forecasted 1.5% expansion.
The data signals weakening domestic demand in the world's largest commodity consumer. Silver remains vulnerable to these trends as industrial applications like electronics and solar energy drive over 50% of its demand. This slowdown creates potential headwinds for future silver fabrication.
Silver prices rose on Monday despite the bearish signals from China. A weaker U.S. dollar and soft U.S. economic data supported the price increase. Investors also reduced expectations for a Federal Reserve rate hike following recent reports.