Silver News

Silver Fails to Rally Back Above $25 in Face of Series of US Interest Rate Hikes

Silver has remained below $25 an ounce in the face of hawkish comments from Federal Reserve Chair Jerome Powell about the pace and strength of the US central bank’s implementation of measures to try and bring inflation under control. With interest rate rises of 50 basis points now almost certain in May and June with another similar hike increasingly likely in July too, non-yield bearing assets such as silver look less attractive in the medium-term. Live Silver Price Chart - $/oz For much of this year, silver has found considerable underlying support each time it has dipped below $25 an ounce but on this occasion, the strength of the market reaction to Powell’s comments has diminished silver’s appeal. But it isn't all doom and gloom for silver as the reason the Fed is having to be so aggressive with its policy is the concern of rising inflation, and silver is typically considered a good hedge against inflation as an asset that has held its value over time. Furthermore, in contrast to gold, silver has a strong industrial demand underpinning it and the outlook for this year looks bullish in this regard and could see the price push upward once again soon. 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 greenwashing 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

22/04/2022

Silver Slips Below $25 But Positive Outlook for Metal Could See Price Rise Again

Silver has slipped below $25 an ounce on a day when traders are seeing the positives from a resilient earnings season against a backdrop of the ongoing conflict in Ukraine and an escalating inflationary environment. It will be interesting to see silver’s reaction having fallen below this significant threshold as on most of the recent times it has dropped below $25, a wave of buying swept in to bump it back above this level. And while today may be seeing silver come under pressure, the wider outlook remains very bullish for the metal. Live Silver Price Chart - $/oz Sadly Russia’s aggression and destruction in Ukraine show no sign of ending anytime soon with the city of Mariupol now nearly entirely flattened in the face of fierce resistance by the Ukrainians still holding out. The risk of further escalation, including the use of chemical or nuclear weapons by Russia, seems a likelier short-term outcome rather than a peace agreement being struck, increasing the appeal of haven assets such as silver. Add in silver’s appeal as a hedge against inflation as well as the fundamental demand for the metal for its industrial application in solar energy and other technologies and it points to silver quickly rising again. 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

20/04/2022

Silver Remains Strong Above $25.5 Per Ounce

US data showed inflation has reached a multi-decade high and investors are betting on gold and silver as a way to protect themselves against the risk of further increases in the pace of inflation. In 2021 a large majority of central banks called inflation “transitory”. The situation dramatically changed in the last few months, especially after the beginning of the conflict between Russia and Ukraine. The recent inflation rally pushed the US CPI to 8.5% in March, and the price growth pace reached a historical record in Europe too, at 7.5%. Live Silver Price ($/oz) One of the main market drivers of this week is expected to be the ECB meeting, in the calendar for tomorrow. It will be interesting to see if the inflation rally will be enough to force Ms Lagarde to accept some of the requests of the North European hawkish policymakers, who are asking her to bend her dovish stance. In this scenario, gold and silver are gaining momentum. Indeed, the ETF holding of gold jumped close to an all-time record, but investors are also buying silver. The precious metal started the week breaking above the key level of $25 per ounce, before continuing its bullish move to jump to $25.6/25.7. As long as the price remains above $25, the technical scenario continues to be positive, with space for a further price increase. We should note, however, that silver has already gained almost 10% since the beginning of the year. Monitor the Silver Price with Kinesis' Live Charts Click Here Carlo Alberto De Casa is an external Market Analyst for Kinesis Money. He also writes as a technical analyst for the Italian newspaper La Stampa. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018. 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

Carlo Alberto De Casa
Carlo Alberto De Casa

13/04/2022

Silver Jumps Above the key Resistance at $25 per Ounce

Uncertainty remains dominant in both the geopolitical and macroeconomic scenarios. Indeed, the war between Russia and Ukraine does not seem to be close to an end, while inflation pressure is forcing central banks to act. Investors are now betting the Fed to raise rates by 0.5% in May, while this week the ECB could include some hawkish notes in its forward guidance. Despite central banks having started to reduce the dovish monetary policies of the last few years, the majority of commodities posted a strong Q1, including silver, which is up 6.5% YTD. Live Silver ($/oz) Price Also, the new week started positively for the grey metal. Indeed, the silver price has surpassed the key resistance level of $25 per ounce. It will be interesting if silver can hold above this threshold. Indeed, last week, the area between $25 and $25.10 has already managed to curb a silver rebound on a few occasions, confirming it to be a solid resistance. Therefore, a clear jump above the $25 threshold would represent a bullish signal for the precious metal. Due to its strong correlation with gold, we could note that the surpass of $1,950 by gold could surely help silver to remain above $25. In this scenario, the gold-silver ratio, which represents how many ounces of silver it would take to buy one ounce of gold, is steady in the region of 78.5. Monitor the Silver Price with Kinesis' Live Charts Click Here Carlo Alberto De Casa is an external Market Analyst for Kinesis Money. He also writes as a technical analyst for the Italian newspaper La Stampa. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018. 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

Carlo Alberto De Casa
Carlo Alberto De Casa

11/04/2022

Silver’s Failure to Regain $25 Point to Current Doldrums But Fair Wind May Soon Blow In

Silver’s failure to climb back above $25 an ounce points to the strength of investor support fading for the time being. On the previous occasions in March that silver had tested this support level, the price had quickly rebounded back above the $25 threshold but this time it has instead continued to drift steadily lower. Silver is so far being driven by the same factors as gold with the hawkish rhetoric from central banks in the US and Europe putting pressure on non-yield bearing assets such as silver and gold. While this is presenting a firm ceiling for any gains, the war in Ukraine is providing strong support to how low silver can drift. Silver ($/oz) chart - from Kinesis Exchange - Silver fails to climb above $25 per oz With it now being about a month and a half since Russian troops first invaded Ukraine, the bulk of the fear trading prompted by this will have been priced in by now. However, Ukrainian Foreign Minister Dmytro Kuleba’s recent request for weapons, weapons and weapons illustrated how long-lasting the conflict looks set to become with any fresh escalation likely to see a renewed rush to haven assets such as silver. Indeed while for now silver seems stuck in gold’s wake, tracking its move both higher and lower, the fundamental outlook still points to silver’s potential to break out higher. Industrial demand for the metal looks strong and may even strengthen further as countries rush to increase solar energy that require silver-containing photovoltaic cells. So while silver may be trapped in the doldrums for now, a fair wind to push it higher may just be over the horizon. Monitor the Silver Price with Kinesis' Live Charts Click Here 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

08/04/2022

Fed’s Hawkish Comments Trigger Fall Below $25 for Silver

Silver has broken below the support zone of $25 per ounce, declining below $24.5. This fall is mostly linked to the increase in U.S. yields, with the 1-year bond yield now at 1.75%, while the 2-year yield is above the 2.50% threshold. On top of this, the US 10-year yields just hit their highest levels since April 2019. The greenback gained momentum, lifted by the Fed’s warning over the need for a prompt reduction in its balance sheet. This is another negative factor for commodities, which are usually priced in the U.S. Dollar. Both gold and energy-related commodities lost ground yesterday. Even so, both WTI and Brent remained positive YTD by over 30%. In this context, silver – after recovering once again to the key level of $25 - fell below $24.5 just after Fed member Lael Brainard's hawkish comments. Silver ($/oz) Chart - 24-hour view - from Kinesis Exchange Overall silver is underperforming in comparison to gold. The ratio between the two main precious metals is now above 79 (to buy one ounce of gold, 79 ounces of silver are needed). From a technical point of view, there is a first support zone at $24, while a clear return above the resistances placed at $25 and $25.2 would make space for new recoveries. Monitor the Silver Price with Kinesis' Live Charts Click Here Carlo Alberto De Casa is an external Market Analyst for Kinesis Money. He also writes as a technical analyst for the Italian newspaper La Stampa. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018. 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

Carlo Alberto De Casa
Carlo Alberto De Casa

06/04/2022