Silver’s slight rally earlier in the week hasn’t ended up coming to much with the price now back below $24 an ounce to remain within the narrow range it has been trading at so far this year.
While silver treads water, gold has continued to gain with the ratio between the two precious metals now above 80. Quite why silver has failed to join its precious metal peer in carrying on its strong final quarter of 2022 into this year continues to confound.
This week’s weakening of the US dollar added to the bullish factors for silver, including a strong fundamental case which sees industrial and investment demand outstripping supply, and the prospect of the Federal Reserve soon ending its series of rate hikes, which was the biggest drag on silver’s price in 2022.
With no obvious explanation as to why silver has failed to move higher, the longer it remains so muted, the greater the length of opportunity for an investor to buy ahead of the price rally that will surely come soon.
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