Silver is struggling for a clear direction with the price moving sideways a bit below $23 an ounce.
Investors are awaiting a fresh catalyst to drive the silver price with the bearish factors, such as the prospect of more interest rate hikes by central banks, offsetting the bullish ones, notably the strong fundamental case for the metal with demand outstripping supply.
Recent history has shown that the macroeconomic factors have tended to have an outsized impact on the silver price so the words and actions of the Federal Reserve and its officials will be closely scrutinised in the run up to the interest rate committee’s meeting later this month.
So far the US economy has proven fairly resilient in the face of the Fed’s series of interest rate hikes over the last year or so and this has been helpful for silver too with the boost it has given to industrial demand for the metal. However, while the long-term picture remains attractive for silver, the short-term one in which the Fed is set to hike in both July and potentially September imposes a strong ceiling on any gains for the metal for the time being.
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 renewable energy 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.
