Silver News

Silver Price News: Silver Stable Above $21 Awaiting Fresh Catalyst

Silver continues to trade above $21 an ounce with the metal going through a consolidatory phase awaiting a fresh catalyst to drive the price. Silver is caught between a strong fundamental outlook that suggests its price should be far higher, with another record year of demand in prospect, set against a macroeconomic picture in which interest rates are likely to continue rising for a while yet. As such, Federal Reserve Chair Jerome Powell’s comments later this week will be highly instructive for silver investors, who will be analysing his speech to determine where the interest rate curve of the US central bank is headed. After some optimism about an early pivot earlier in November, Powell could well deliver a reality check about the need to maintain interest rate hikes well into 2023. However, if Powell’s comments prove more dovish then silver is primed for another rally, having built up sufficient support above $21 an ounce to climb again and recover more of the ground lost in the metal’s multi-month plunge from April through to September. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

28/11/2022

Silver Price News: Silver Hovers Above $21 After Week of Consolidation

Silver is hovering just above $21 an ounce after a quieter trading week, which included the US Thanksgiving holiday, that has seen less dramatic moves and enabled traders and investors to take stock. Silver’s outlook remains characterised by two contrasting factors: the strong fundamental case for the metal and the impact of interest rate hikes by central banks across the world. For much of the year, silver’s fundamental case didn’t get a look in and instead all the focus was on the detrimental impact of ever-increasing interest rates. However, for the last couple of months, the metal’s strong demand from the solar, electric vehicle and tech industries has gained attention. From a fundamental perspective, silver’s current price remains far too low with a year of record demand anticipated, with recent holdings data also showing silver being pulled out of vaults for coin and bar production. Yet any efforts to make sustained gains back to the $26 an ounce level seen in March are thwarted by the Federal Reserve’s need to keep on raising its benchmark interest rates, which dwindles the appeal of a non-yield-bearing asset like silver. With December near certain to see another hike by the Fed, albeit potentially slightly smaller than recent months, this is putting a cap on silver’s price. Yet the moment there is any hint of a dovish pivot by the Fed, expect silver to make significant gains. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.  As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

25/11/2022

Silver Price News: Silver Perks Up on Prospect of Positive Spin on Fed Minutes

Silver has perked back up above $21 an ounce ahead of the release of the November minutes of the Federal Open Market Committee as a slight weakening of the US dollar allied to a likely positive market reaction to the publication of these minutes boosted support for the precious metal. This slight uptick is a reminder of the strong fundamental case that currently holds for silver. The metal is a key component within the solar energy, 5G and electric vehicle industries, whilst investment demand has also been on the rise. Therefore, in contrast to the situation earlier in the year where every macroeconomic release prompted a fresh decline for silver, optimistic investors are now seeking the positives for silver in every new data point. Today’s Fed minutes will give greater clarity on where the US central bank sees its interest rate curve going over the coming months. Since this meeting convened at the start of November, a slew of Fed officials have commented about the need to keep interest rate hikes going for a while yet with talk of the rate needing to climb to 5%, so the publication of the minutes will provide a clearer indication on how united the committee was on the prospect of another large hike in December, as well as in early 2023. Whichever way the wording lands, the sense is that investors will look for the positive spin to place on it for silver and try to push the price up further to recover more of the ground lost since April. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

23/11/2022

Silver Price News: Silver Short-Term Slide Continues Under Pressure From Stronger Dollar

Silver’s short-term slide continues with the precious metal now trading comfortably below $21 an ounce as a stronger US dollar alongside concerns over the impact the recent Covid deaths in China will have on the global economy weighed on sentiment. Once again, silver is illustrating how vulnerable it is to the words and actions of the Federal Reserve and its officials as the latest decline has been prompted by a reappraisal of how much longer the US central bank will keep on raising interest rates for. A rally earlier in the month was prompted by the prospect of the Fed slowing its hikes as soon as the start of next year, but recent comments from Fed officials suggest that any pivot on policy is some way off yet. With silver’s fortunes so closely aligned to the dollar - which the metal has a typically inversely correlated relationship with - the recent strengthening of the greenback has stopped silver’s recovery since its September lows in its tracks. While the long-term fundamental outlook for silver remains positive, the short-term clouds brought by Fed hikes are blocking that sunny picture. As a result, these latest dips could present another buying opportunity for brave investors - particularly if the Fed’s hike in December proves to be no greater than a 50 basis points increase. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

21/11/2022

Silver Price News: Silver’s Rally Runs Out of Steam Amid Prospect of More Rate Hikes

Silver’s recent rally looks to have run out of steam for the time being with the price dropping back to a little over $21 an ounce. The US dollar’s renewed strength, driven by hawkish comments from Federal Reserve officials that indicate the bank is unlikely to pause hiking interest rates any time soon, has hit silver, which is priced in the greenback and has an inverse correlation with the currency as a result. As well as strengthening the dollar, the prospect of further significant rate hikes is also detrimental for silver’s outlook. It was after all the Fed’s switch to this aggressive policy of large interest rate hikes in April that caused the price of silver to come crashing down over a series of months. Yet while the recent comments remind investors that we are far from out of the inflation woods yet and that further rate hikes are likely, the long-term case for silver remains strong. Therefore the recent dips could present another buying opportunity for those seeing silver as a metal in hot demand for the energy transition. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis

Rupert Rowling
Rupert Rowling

18/11/2022

Silver Takes Stock as Investors Weigh Fundamental Case Against Rising Rates

Silver is taking stock of the macroeconomic and geopolitical picture with the price stabilising just shy of $22 an ounce. While the price continues to trade near levels last seen in June, its failure to continue its recent run of gains points to investors reassessing where silver’s fair value now lies. Certainly the lows touched in September were way below the fundamental price of a metal in high demand from industries such as solar, 5G and electric vehicles should be and this drove silver’s impressive rally since that nadir. However, now that silver has recovered significant ground, the question is: how far can silver climb in an environment where interest rates are likely to continue rising for a while yet? It was after all the Federal Reserve’s implementation of an aggressive monetary policy from April onwards that caused silver’s price to plunge from above $26 an ounce to below $18 an ounce over the course of spring and summer. And there is no suggestion that the Fed won’t implement another hike in December, it’s more a question of whether it will be another super-sized 75 basis point hike or a slightly more muted 50 basis point one. Encouraging inflation figures have given hope to investors that the Fed can be less aggressive from December onwards but that contrasts with the recent words of Fed officials that point to a need to keep the pressure up until inflation is truly tamed. So for now, silver’s strong fundamental case is being marked against a hawkish macroeconomic environment with investors working out which is the most dominant factor currently. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis

Rupert Rowling
Rupert Rowling

16/11/2022