Silver’s brief uptick earlier in the week has quickly been replaced with a further downward movement with the precious metal now trading a little above $21 an ounce at its lowest level since late November.
A readjustment in the outlook among traders and investors of how many more interest rate hikes the Federal Reserve is likely to implement remains the bearish driver currently, with silver suffering in this environment due to its lack of yield.
Later today brings a range of US consumer spending data and these will provide further insight into how well the world’s largest economy is faring in the face of ever-rising prices. Silver investors will be hoping that these show that consumers are continuing to spend but that core inflation continues its downward trend.
Given silver’s industrial appeal, a healthy US economy, particularly one with so much green spending allocated to it on the back of the Inflation Reduction Act, is vital for silver’s demand profile.
Silver’s usage in solar panels and electric vehicles ensures that the metal has a very healthy fundamental outlook going forward with demand outflanking supply, yet so far this year this bullish case hasn’t been allowed to be heard. While silver is languishing at these low levels, it presents a renewed opportunity for a brave investor to jump aboard silver’s recovery train from the start.
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.