Posted 17th July 2023

Silver Price News: Silver Consolidates As Investors Buy Into Strong Fundamental Case

silver price news july 17

Silver has started a new week dipping a fraction from the highs touched at the end of last week but remains close to $25 an ounce

silver price news

The precious metal has enjoyed a turnaround in its fortunes with investors finally buying into silver’s bullish fundamental outlook with rising industrial demand from the solar and electric vehicle sectors pushing the metal into another supply deficit this year. 

While this supply deficit has been well known about with demand outstripping supply of silver since 2019, the fundamental story has failed to get a look in while the focus has been on the Federal Reserve’s series of interest rate hikes it has implemented over the last year or so. Now while the Fed hasn’t yet finished hiking, with another increase expected when the committee meets later this month, investors are looking ahead to the end of the hiking cycle and now looking at the positive demand outlook of silver, which has a crucial role to play in the energy transition away from fossil fuel sources in favour of renewable ones.

For now, silver is enjoying a positive run with the high of last year above $26 an ounce a major resistance hurdle to clear. The recent past has given plenty of false dawns for silver investors so holders will be fearful of how lasting the recent recovery proves until the reaction to the Fed’s interest rate decision is known. Assuming the rate hike is taken in silver’s stride, then the price can continue pushing on above $25 and achieve a fresh high for the year. 

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