Silver News

Silver Faces Nervy Wait Ahead of Fed’s Latest Move After Previous Hikes Sparked Plunge

Silver investors face a nervy wait ahead of the Federal Reserve’s latest interest rate decision later today. While the metal’s price is finally showing signs of stabilising a little below $19 an ounce, the actions of the US central bank have been the biggest catalyst of silver’s dramatic price plunge since mid-April. The strong consensus is that the Fed will implement another 75 basis point move to its benchmark rates and given how long this has been the talk of markets, the expectation will be that the reaction to this is already fully priced into silver’s price. However, with silver more prone to volatility than its golden peer due to its comparatively lower trading volumes, a sharp negative reaction when confirmation hits of another large Fed hike can’t be ruled out. The hope that silver bulls will cling to is that the metal is already at a considerable discount to its fair value with the recent trading activity pointing to a market having reached its bottom. Furthermore, the fundamental outlook remains supportive with silver a key component of key industrial sectors for the energy transition, notably in photovoltaic cells for solar generation and in batteries for electric vehicles. The key question will be how far out is the market looking? Could there yet be more short-term pain for silver before that sunnier horizon hoves into view? 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

27/07/2022

Silver Languishes Below $19 as Markets Look Ahead to Fed’s Latest Interest Rate Hike

Silver is languishing around the mid to late $18 an ounce with no clear market direction as we enter the final week of July. This week is set to be dominated by the Federal Reserve’s interest rate decision on Wednesday with silver investors fearing another large hike will be the trigger for fresh pain to be poured onto the metal’s price. Live Silver Price – $/oz It was the Fed’s switching of monetary policy back in April that prompted silver’s sharp decline over the following months having started the year climbing up above $26 an ounce. However those heady days seem but a distant memory for those investors now having seen their holdings plunge by $8 an ounce, or by more than 30 percent. The glimmer of optimism for silver is that the price is finally stabilising at its current levels at that with the market expecting a 75 basis point increase by the Fed, confirmation of that won’t materially affect its price. Recent history suggests that silver has been more heavily punished than gold by the same underlying cause so just because the move feels largely priced in, silver may yet experience a further plunge on Wednesday. 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

25/07/2022

Silver is Encountering Tough Resistance Near $19 as Weaker Dollar Fails to Deliver Gains

The threshold of $19 an ounce is proving to be a strong resistance level for silver with the metal failing to climb back above this level even in a week, where the strength of the bearish factors that have been pulling the price down, have eased a bit. A slightly weaker dollar provided relief to equity markets as well as all those commodities priced in the US currency but still silver finds itself stubbornly below $19 an ounce at around $18.75 an ounce. This highlights how much the metal has fallen out of favour with investors with the prospect of another large interest rate hike by the Federal Reserve next week diminishing silver’s short-term appeal further still. Live Silver Price – $/oz The glimmer of hope for silver investors is that while the price might not be making significant gains, it is at least not dropping, which given the series of painful weeks the metal has endured since mid-April is something worth toasting. Once this large cloud finally lifts from silver’s outlook, the fundamental picture remains supportive so for those brave enough to buy now, this could be a pivotal moment that marks the start of silver’s long overdue recovery. 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

22/07/2022

Silver’s Lack of Support Underlined by Metal’s Failure to Climb Back Above $19

Silver’s attempts to climb back above $19 an ounce have yet to prove successful, further underlying the lack of meaningful support for the precious metal. Today has brought fresh inflation data from the UK that shows that prices are continuing to rise at an ever faster rate with the peak still not yet reached. While inflation would typically be a supportive factor for silver, this has been heavily outweighed by the actions taken by central banks to try and bring runaway inflation back under control. Live Silver Price – $/oz Next week the Federal Reserve is almost certain to raise interest rates by another 75 basis points while today’s UK inflation data has increased the likelihood of the Bank of England implementing its first 50 basis point hike since the bank gained independence from the UK government. These ever-increasing interest rates have diminished silver’s appeal due to its lack of yield with the fall in price from the highs achieved as recently as mid-March both spectacular and painful for holders of silver. The glimmer of hope is that the declines have certainly slowed with signs that the price may be bottoming out…. But then those words have been said before and proven false dawns! 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

20/07/2022

Silver Starts Week on Optimistic Note as Weaker Dollar Sees Price Challenge $19

Silver is enjoying a rare positive start to the week with the price attempting to climb back above $19 an ounce. A slight weakening in the US dollar has allowed both equity and commodity markets to enjoy a brief bit of respite after a punishing few months. With expectations now switching back to the Federal Reserve hiking increase rates by “just” 75 basis points rather than the 100 basis points that was being mooted last week, this has seen the dollar fall back from its record high and caused all those assets priced in the US currency, including silver, to gain as a result. Live Silver Price – $/oz Expectations on how high or for how long silver can gain must be tempered by the fact that a 75 basis point hike later this month by the Fed, the second in consecutive months, still represents a huge increase in recent history, while the silver’s spectacular fall from investors’ favour in recent months needs more than a slight weakening in the dollar for it regain their love. In the short-term, silver holders will be hoping that there is sufficient momentum today for the metal to climb back above $19 an ounce and for that level to become the support against future bearish factors. After a brutal three months, silver must surely be close to reaching its bottom and after a false dawn last week, perhaps today’s gain is finally it? 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

18/07/2022

Silver is Sliding Again as Markets Price in Possibility of Record Interest Rate Hike by Fed

So much for silver showing signs of finally stabilising with the price holding around $19 an ounce. A few days later and silver is on the slide once again to be verging on $18 an ounce. The latest catalyst for silver’s decline is the prospect of the Federal Reserve increasing interest rates by 100 basis points, or one percentage point, when it meets later this month. The US June inflation figure came in higher than forecast at 9.1% earlier this week, adding pressure on the US central bank to do more still to curb these ever escalating prices. Live Silver Price – $/oz Atlanta Fed President Raphael Bostic said earlier in the week that “everything is in play” when the committee meets. While a 75 basis point move remains the most likely option, this rhetoric about even stronger moves is punishing non-yield bearing assets such as silver as well as helping strengthen the dollar. Aside from the fleeting respite glimpsed earlier in the week, silver has been punished by the markets for every incremental macro-economic event or comment and it is difficult to see where support can come from in the short-term. The bottom has proven impossible to call for silver but when it finally is found, the fundamental demand outlook paints a far rosier picture.  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

15/07/2022