Silver investors can for a change look at the charts with a hint of optimism with the metal trading in green territory above $21 an ounce.
In fact, the bulk of equities and commodities are pointing upwards at the start of a new week of trading with the recent sell-offs deemed overly aggressive with some rebalancing of levels required.
Live Silver Price - $/oz
Silver’s slump has mainly been a result of central banks, in particular the Federal Reserve, tightening their monetary policies in recent months by winding in stimulus packages and increasing interest rates. Yet today’s brief pause for reflection on the true state of the markets is a reminder that silver has been meted some particularly harsh treatment by traders.
Later this week the heads of the European Central Bank, the Bank of England and the Fed will all be speaking so silver holders will be fearful of any indication that even more aggressive policies may be required to curb runaway inflation.
So while silver’s tentative gains today are long overdue given the medium-term outlook for the metal that still points to ever-increasing industrial demand, the heavy cloud of further interest rate hikes continues to overshadow the metal’s prospects.
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