Silver is showing signs that its period of treading water around $24 an ounce may finally be over as the price nudged higher to briefly trade at its highest level since April.
Silver has experienced a more passive start to 2023 while its peer, gold, has marched sharply higher. The environment seems perfect for silver to enjoy a sustained rally, with the metal in hot demand among industry and the prospect of the Federal Reserve’s run of interest rate hikes ending in the coming months. Yet despite this bullish outlook, silver has barely moved, causing puzzlement as to what has been holding it back.
If this period of sideways trading proves to be a time in which silver was building sufficient support for the next stage of its rally, then the next few weeks and months could really be a time to keep an eye on the metal’s performance. The need to speed up the energy transition, both from a climate perspective and an energy independence standpoint, means that the rollout of solar panels is only likely to increase, further boosting silver demand, given its role as a conductor of the energy generated.
Now that silver is finally on the move, could this be the start of a solar-charged rally to first challenge last year’s high at above $26 an ounce?
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