Silver’s good run continues with the metal pushing above $21 an ounce and now looking up to the next target.
A slight weakening in the US dollar has given silver the push it had been waiting for after investor support for the metal had been building up considerably from October onwards. The fundamental case for silver has always remained strong, with the metal needed in key areas of the energy transition such as in photovoltaics for solar energy and in batteries for electric vehicles.
However, this bullish fundamental picture had been overshadowed by the Federal Reserve’s series of interest rate hikes it has implemented over the last six months.
Silver’s price had sunk to its lowest levels in more than two years at its nadir in early September but since then it has made a continued effort to recover some of those losses.
With expectation mounting that the Fed’s interest rate hikes may slow in the coming months, the path has been laid for silver to make significant gains from now onwards. The question is more whether it can reach $30 an ounce rather than any concerns about downside supports.
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