Posted 24th Februar 2023

Silver Price News: Silver at Lowest in Almost 3 Months Ahead of US Spending Data

silver bar bullion kinesis

Silver’s brief uptick earlier in the week has quickly been replaced with a further downward movement with the precious metal now trading a little above $21 an ounce at its lowest level since late November. 

A readjustment in the outlook among traders and investors of how many more interest rate hikes the Federal Reserve is likely to implement remains the bearish driver currently, with silver suffering in this environment due to its lack of yield. 

Later today brings a range of US consumer spending data and these will provide further insight into how well the world’s largest economy is faring in the face of ever-rising prices. Silver investors will be hoping that these show that consumers are continuing to spend but that core inflation continues its downward trend. 

Given silver’s industrial appeal, a healthy US economy, particularly one with so much green spending allocated to it on the back of the Inflation Reduction Act, is vital for silver’s demand profile.

Silver’s usage in solar panels and electric vehicles ensures that the metal has a very healthy fundamental outlook going forward with demand outflanking supply, yet so far this year this bullish case hasn’t been allowed to be heard. While silver is languishing at these low levels, it presents a renewed opportunity for a brave investor to jump aboard silver’s recovery train from the start.


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