In contrast to gold, which looks set for a period of steady decline, silver’s prospects look more promising with the price continuing to tick upward, climbing towards $24 an ounce.
The silver price is being boosted by receding fears of a global recession with the US economy in particular looking to be in good health. This is likely to boost industrial demand for silver and help encourage US President Joe Biden to promote his green agenda and speed up the rollout of solar energy and the adoption of electric vehicles, which require significant quantities of the metal.
Next week will also likely bring the Federal Reserve’s first pause in interest rate hikes since the US central bank started its aggressive stance against persistently high inflation over a year ago. With rising interest rates proven to be the biggest single obstacle in silver’s efforts to climb higher, the path ahead for the price to keep on climbing looks clear.
So while silver has had many false dawns in recent months and years, a strong industrial case combined with favourable macroeconomic conditions should see the price finally break through resistance at $26 an ounce which has proven silver’s peak in recent years.
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.
