Silver is languishing around the mid to late $18 an ounce with no clear market direction as we enter the final week of July.
This week is set to be dominated by the Federal Reserve’s interest rate decision on Wednesday with silver investors fearing another large hike will be the trigger for fresh pain to be poured onto the metal’s price.
Live Silver Price – $/oz
It was the Fed’s switching of monetary policy back in April that prompted silver’s sharp decline over the following months having started the year climbing up above $26 an ounce. However those heady days seem but a distant memory for those investors now having seen their holdings plunge by $8 an ounce, or by more than 30 percent.
The glimmer of optimism for silver is that the price is finally stabilising at its current levels at that with the market expecting a 75 basis point increase by the Fed, confirmation of that won’t materially affect its price. Recent history suggests that silver has been more heavily punished than gold by the same underlying cause so just because the move feels largely priced in, silver may yet experience a further plunge on Wednesday.
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