Silver’s largely boring start to the year continues with the price continuing to oscillate within its narrow range either side of $24 an ounce.
It is now clear that silver investors and traders are waiting for a fresh catalyst to drive the price as the underlying case for the precious metal remains solid. The prospect of a more dovish Federal Reserve has already been priced in, albeit with a much less marked price reaction than for silver’s precious metal peer gold. Equally, the fundamental picture in which strong industrial demand is likely to prompt a third year of deficit as mining and recycling fails to keep pace. Furthermore, while today’s weaker US dollar will undoubtedly be a boost for silver, given it is typically priced in the US currency, the greenback’s peak came some months ago so the day-to-day changes don’t seem to be having a material impact.
As such, silver finds itself trading at a healthy level considering where it was back in September but still frustrating those bulls who see plenty of reasons for the price to climb much higher yet and challenge both the high of last year above $26 an ounce and then potentially continue up towards $30.
One factor that could raise silver out of its current slumber is the receding likelihood of a global recession this year. If this theme continues and more data lands to support it then this could further boost industrial demand for the metal and give it the kick start the price needs.
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.
