Silver has started March on a positive note with the price climbing back above $21 an ounce and showing signs that the slump of February may be over.
From a macroeconomic perspective, nothing much has changed to cause this slight turnaround in silver’s fortunes. Instead, the readjustment of prices caused by a fresh reckoning on how much longer the Federal Reserve, and other central banks, are likely to continue increasing their benchmark interest rates is now complete.
Silver investors will certainly be hoping this is the case after the metal had some significant price punishment meted out to it in this scenario, with the precious metal’s lack of yield counting against it in an environment where interest rates are continuing to rise.
While the fundamental case for silver remains strong, its chance to be fully heard from an investor perspective is still likely to be delayed for another month yet, at least until the markets receive confirmation of how much the Fed will increase its interest rate by when the committee meets on March 22nd.
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.
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