Silver, like gold, has been pulled down by a slight increase in risk appetite following words from Ukrainian President Volodymyr Zelensky that he is willing to consider neutral status for Ukraine in upcoming talks with his Russian counterparts.
Hope that peace can be achieved in the coming weeks has seen equities gain and haven assets such as silver decline. Added to that, a stronger dollar has also added pressure to dollar-priced assets with silver now trading just above $25 an ounce.
It will be interesting to see silver’s reaction if it does fall through the $25 threshold as on the three previous occasions it has dipped below recently, the price has quickly rebounded back above $25.
Fundamentally, the outlook for silver remains encouraging with industrial demand set to be strong, particularly for photovoltaic cells, while rising inflation is another source of strength with silver considered a hedge against rising prices.
These bullish factors outweigh the headwinds provided by rising interest rates and a slight reduction in fear trading and should see silver climb again soon.
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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.