In contrast to its golden peer, silver ends July looking downwards rather than upwards with the price barely holding above $24 an ounce having surged above $25 an ounce earlier in the month.
Silver’s climb up to $25 an ounce looked to be the start of a long-awaited sustained rally for the precious metal with strong long-term demand for silver’s conductive qualities driving a fundamental outlook that projects a multi-year supply deficit.
However, yet again macroeconomic factors have pulled the price back with a stronger US dollar on the back of the Federal Reserve’s latest interest rate hike last week reducing silver’s appeal. And with further hikes expected from the Reserve Bank of Australia and the Bank of England this week, that could limit silver’s potential for short-term gains.
Yet with investors and traders now looking past the current hikes and instead focusing on how close the Fed and other central banks are to reaching the peak of their interest rates, this could yet provide another opportunity for silver’s outstanding fundamental case to gain the attention it deserves and see the price once again push up to $25 an ounce and beyond.
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.
