In contrast to gold, which looks set for a period of steady decline, silver’s prospects look more promising with the price continuing to tick upward, climbing towards $24 an ounce.
The silver price is being boosted by receding fears of a global recession with the US economy in particular looking to be in good health. This is likely to boost industrial demand for silver and help encourage US President Joe Biden to promote his green agenda and speed up the rollout of solar energy and the adoption of electric vehicles, which require significant quantities of the metal.
Next week will also likely bring the Federal Reserve’s first pause in interest rate hikes since the US central bank started its aggressive stance against persistently high inflation over a year ago. With rising interest rates proven to be the biggest single obstacle in silver’s efforts to climb higher, the path ahead for the price to keep on climbing looks clear.
So while silver has had many false dawns in recent months and years, a strong industrial case combined with favourable macroeconomic conditions should see the price finally break through resistance at $26 an ounce which has proven silver’s peak in recent years.
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