The performance of silver has been negative so far in 2022, with a decline of 18% year to date.
A mix of negative factors, including fear of recession, rising interest rates and a strong US Dollar, hit the price of the industrial metal hard. Overall, the trend remains weak but in the last 36 hours, silver seems to have stopped its decline, building an interesting support zone at $18.
The price rebounded twice after reaching this level, ahead of the Jackson Hole Symposium, during which the chairman of the Federal Reserve might offer some hints on the next policy moves by the US central banks. Moreover, from a technical point of view, there are further support zones placed at $18.50 and between $18 and $18.20 per ounce.
Investors are keeping their eyes on the Fed’s reaction to growing inflation, which has reached 8.50% in the United States. Policymakers are trying to mitigate price growth and avoid the risks of a recession. Any dovish news from the Fed could represent a positive catalyst for silver, while any hawkish decision could increase the bearish pressure on the precious metal.
From a technical point of view, gold is now close to the important support zone of $1,750, while the next key levels to monitor are placed at $1,720 and $1,680. On the other hand, we could see a trigger to the upside if the price rises above $1,790 and if it breaks above the resistance placed at $1,820.
Carlo Alberto De Casa is an external Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. Carlo provides regular commentary for UK notable outlets including the BBC, Telegraph, The Independent, Bloomberg, FX Empire and Reuters.
With a credential background in Economic Finance and International Exchange (MA), his critical analysis on gold and silver’s markets performance is frequently quoted by leading publications, week-on-week.
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.
