Silver’s buoyancy has persisted throughout the week with the metal holding comfortably above $19 an ounce even with this week’s large interest rate hikes by both the Federal Reserve and the Bank of England.
Given that it was the Fed’s changing its monetary stance that triggered silver’s multi-month plunge back in April, this week’s price resilience by silver is significant. The precious metal found its bottom earlier in the summer with investors starting to look forward to its bullish medium to long-term fundamental outlook with silver set for a record year of demand with its crucial role in the manufacturing of solar panels and electric car batteries.
While silver’s sideways movement isn’t spectacular, given the torrid months holders of the metal endured earlier in the year, a period of consolidation will still be cherished, particularly when viewed in the context of gold, silver’s precious metal peer, currently languishing at near two-year lows.
Currently there are too many economic clouds for silver to make real gains, with the threat of recession still looming large, but if any positive data starts to emerge, silver looks primed to make significant gains and recover more of the ground it has lost this year.
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