Silver News

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

Silver Shrugs Off Strengthening Dollar to Remain Near June High

Silver continues to trade near its highest level since June even with today’s slight dip caused by a strengthening US Dollar. Silver has enjoyed a turnaround in fortunes with investors now looking for reasons to drive the price higher after months in which every piece of macroeconomic data was viewed negatively for the precious metal. Federal Reserve Governor Christopher Waller’s comments over the weekend reminded investors that the US is far from out of the inflation woods and that the US central bank is still some way off stopping increasing its benchmark interest rates. The fact that this has only caused the smallest of dips in silver’s price underlines the change in sentiment for the metal. From March through to September, every utterance by a Federal Reserve official seemed to spark a fresh plunge for silver but now there is sufficient underlying support for the metal, drawn from its strong fundamental case, that silver can now shrug off these bearish comments. That said, an environment in which interest rates continue to rise remains a negative factor for silver, but now it seems more likely to slow the pace at which silver’s price rises rather than cause it to fall back to the lows seen in September and October. 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

14/11/2022

Silver at Highest Since June on Optimism That US Inflation Has Peaked

Silver keeps on climbing and is now at its highest level since June with yesterday’s lower-than-expected inflation figure out of the US the latest source of optimism. Inflation that is showing signs of finally being on a downward trend will provide the Federal Reserve with more wiggle room to reduce the aggressiveness of its upcoming interest rate moves. This is beneficial for silver as it was the Fed’s adoption of hawkish strategy in March that caused a multi-month plunge in the metal’s price. After reaching its nadir in September, silver has enjoyed a more stronger performance since then with support continually building as investors wake up to the metal’s strong fundamental case which should see silver in strong demand over the coming years given its use in the key technologies of our time such as 5G, solar panels and in batteries for electric vehicles. While silver is set for another week of gains, its performance has been overshadowed by gold’s huge rise in recent days. Given the close correlation between the two assets, that suggests there is more upside potential for silver playing catch up. Certainly, of the two metals, it is silver that has the stronger long-term outlook. 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

11/11/2022

Silver Set for Continued Good Run as Fundamental Case Gains Prominence

Silver’s good run continues with the metal pushing above $21 an ounce and now looking up to the next target. A slight weakening in the US dollar has given silver the push it had been waiting for after investor support for the metal had been building up considerably from October onwards. The fundamental case for silver has always remained strong, with the metal needed in key areas of the energy transition such as in photovoltaics for solar energy and in batteries for electric vehicles. However, this bullish fundamental picture had been overshadowed by the Federal Reserve’s series of interest rate hikes it has implemented over the last six months.  Silver’s price had sunk to its lowest levels in more than two years at its nadir in early September but since then it has made a continued effort to recover some of those losses. With expectation mounting that the Fed’s interest rate hikes may slow in the coming months, the path has been laid for silver to make significant gains from now onwards. The question is more whether it can reach $30 an ounce rather than any concerns about downside supports. 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

09/11/2022