Posted 5th July 2023

Silver Price News: Silver Drifts As Rate Hikes Offset Strong Industrial Demand

market analysis silver

Silver is still waiting for a fresh catalyst to shake it out of its sideways drift a little below $23 an ounce

Surging global demand for silver from the solar industry will lead to another supply deficit this year for the metal yet silver’s strong fundamental case is failing to gain sufficient traction in the face of rising interest rates around the world.

Silver price news wednesday 5th july

The Federal Reserve looks set for another couple of hikes in order to ensure inflation shrinks back to its 2% target and this is weighing on silver’s ability to climb higher as the metal’s lack of yield make it less attractive to investors at times of rising interest rates.

Right now, the healthy demand outlook for silver and the prospect of further interest rate hikes are both well known by investors and this is resulting in a silver price that is standing still. Therefore, it will take a surprise move, or perhaps a lack of a move, by the Fed or another major central bank to shake silver out of its summer slumber. 

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