Silver Price News: Silver Hovers Near $24 After Failing to Match Gold’s Gains

Silver has dipped back towards $24 an ounce reflecting traders and investors lack of uncertainty on where the precious metal sits within the current market dynamic. 

On the one hand, the latest US employment figures released on Friday showed that the Federal Reserve’s series of interest rate hikes is starting to bite with unemployment unexpectedly increasing.

This has given a boost to most asset classes, including equities and gold, silver’s precious metal peer, as it has increased the likelihood of the Fed deciding to hold off on any further hikes now that inflation is nearing its 2% target and the first signs are visible of the world’s largest economy feeling the pinch from fast-rising interest rates. 

Silver however has failed to receive the same boost as doubts linger over the true health of the global economy, particularly with the US now showing signs of strain. Silver’s greater industrial exposure compared with gold means that it needs a growing global market to ensure the very healthy demand projections, that sees supply unable to keep up pace for the foreseeable future, are sustained.

That said, given that silver, with its excellent conductivity, is such a key component of the energy transition, a sector least likely to be affected by economic factors, silver’s current failure to climb could represent another opportunity for investors to top up their holdings with a long-term price of $30 an ounce highly possible.