In contrast to the clear upward trajectory for gold, its precious metal peer continues to largely tread water at around $24 an ounce.
Given the typically close correlation between the two precious metals, these contrasting moves are particularly difficult to fathom considering the same factors that are supposedly boosting gold (a weaker US dollar and the prospect of rate hikes ending soon) should also be supportive for silver.
Add in the fact that silver’s fundamental outlook is also bullish, with demand currently outstripping supply, then silver’s lack of price movement is even more puzzling still.
During silver’s impressive recovery from mid-October through to the end of 2022, there were often periods of short-term price consolidation before the next move higher but the current price stasis is now longer than a typical consolidation period. Clearly, silver investors are taking a more cautious approach and awaiting confirmation that inflation in the US is truly on a downward trajectory. If tomorrow’s number meets expectations or even surpasses it then silver looks well placed for a fresh surge.
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