Silver is closing on $22 an ounce as asset classes readjust their levels after a series of sharp drops in recent weeks.
While the sell-off saw global indices plunge, silver seemed to be meted out its own extra punishment by investors with the price slumping from close to $26 an ounce to below $21 an ounce in barely a month. Having been sold off so brutally, silver now has great potential to recover a considerable amount of territory during this readjustment phase.
Live Silver Price – $/oz
Today the weaker US dollar, which silver is priced in, is helping the metal gain. Going forward silver can continue to benefit from a fresh appraisal of the global economic outlook which could boost silver’s industrial appeal.
While the gains for silver are likely to be capped by the prospect of the Federal Reserve administering interest rate hikes in both June and July, the fundamental outlook for silver still presents a strong enough case for the metal to gain back to levels seen in mid-April.
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