Silver is trading at around $24 an ounce at the start of a week which is likely to set the macroeconomic scene for the second half of the year.
Wednesday brings the Federal Reserve’s highly-anticipated decision on its benchmark interest rates, with the first pause on its series of hikes since the US central bank adopted its aggressive stance to curb stubbornly high inflation over a year ago.
Silver’s price has enjoyed an uplift on the prospect of the Fed finally hitting pause with the metal’s price having struggled in the face of rising interest rates as physical holders don’t receive a yield from silver, making other interest-bearing assets more attractive instead.
It is worth noting that silver KAG crosses that bridge by matching the security of a physically-backed asset with the added attraction of a monthly yield based on holding silver in a Kinesis account and silver-based transactions carried out the previous month.
While the strong favourite is for the Fed to hold off on further increases to its benchmark rate, there is a lingering concern that there may still be a surprise in store, particularly after recent hikes by the Canadian and Australian central banks. As such, silver, along with markets more broadly, are in a wait-and-see mode with silver investors hopeful of a pause that can see the metal continue its upward trajectory and push on to challenge the year’s high above $26 an ounce.
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.
