Posted 7th June 2023

Silver Price News: Silver Building Up Momentum on Improving Economic Outlook

silver bar bullion

Silver looks to be picking up some momentum again as the price climbs towards $24 an ounce on the prospect of the Federal Reserve pausing interest rate hikes when it meets next week as well as recent positive economic data.

Silver’s significant industrial exposure will see it benefit from a healthy US economy with demand from silver-using sectors such as solar energy and electric vehicles set to keep on rising. 

Add in the single biggest headwind for silver in the last year, the Fed’s aggressive interest rate policy, looking like it has come to an end and the medium-term outlook for the metal suggests the price could soon challenge the high of this year at around $26 an ounce. Indeed so strong is the fundamental case for silver that if the price does start to get on a roll, it could conceivably rise as high as $30 an ounce before the year’s end.

However, silver’s strong fundamental case has remained in place during recent price falls with macroeconomic factors taking precedence in investor’s attitudes instead. Therefore, while silver looks bound to climb in the long-term, the journey higher will continue to be marked by considerable bumps along the way.

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.