Posted 5th June 2023

Silver Price News: Silver Lacks Clear Direction Ahead of Next Week’s Fed Meeting

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Silver is pointing downward again with the price trading in the mid $23s an ounce as the precious metal struggles for a clear direction.

On the one hand, Friday’s buoyant US jobs report points to the world’s largest economy being in robust health and therefore supportive for silver’s industrial demand. On the other hand, with the US debt ceiling crisis seemingly now over and markets feeling more optimistic, silver’s safe haven appeal and lack of counterparty risk is becoming less attractive. 

Yet while silver may be lacking a clear direction in the short-term, its fundamental outlook remains very strong in the medium to long-term as demand for the metal continues to outstrip supply. 

Therefore, with the US debt ceiling cloud having lifted and next week bringing clarity on where the Federal Reserve sees its interest rates heading, then silver’s path to climb higher should be largely cleared. As such, each dip in price offers a long-term investor another opportunity to top up a holding that remains well below where its fundamentals suggest it should be. 

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.