The threshold of $19 an ounce is proving to be a strong resistance level for silver with the metal failing to climb back above this level even in a week, where the strength of the bearish factors that have been pulling the price down, have eased a bit.
A slightly weaker dollar provided relief to equity markets as well as all those commodities priced in the US currency but still silver finds itself stubbornly below $19 an ounce at around $18.75 an ounce.
This highlights how much the metal has fallen out of favour with investors with the prospect of another large interest rate hike by the Federal Reserve next week diminishing silver’s short-term appeal further still.
Live Silver Price – $/oz
The glimmer of hope for silver investors is that while the price might not be making significant gains, it is at least not dropping, which given the series of painful weeks the metal has endured since mid-April is something worth toasting.
Once this large cloud finally lifts from silver’s outlook, the fundamental picture remains supportive so for those brave enough to buy now, this could be a pivotal moment that marks the start of silver’s long overdue recovery.
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.