Posted 29th March 2023

Silver Price News: Silver consolidates above $23

silver news

The silver price has consolidated its recovery, remaining above $23 after its recent rally.

The banking sector troubles and a quick change in interest rate expectations have lifted up precious metals – resulting in silver gaining around 16% from the March bottom when it traded just below the $20 threshold.

From a technical perspective, the trend for silver remains solid. A clear surpass of $23.5 could open space for a new recovery to the next resistance zones at $24.2 and $24.5.

Moreover, the fundamentals for the grey metal are still supportive, with analysts forecasting growing demand from different industrial sectors – especially the photovoltaic and electric car batteries – which are expected to further boost silver demand in the next few years on a global scale as part of the green transition.

Analysing the ratio between silver and gold, which expresses the number of ounces of silver needed for purchasing one ounce of gold, we can see a decline. This indicates that silver is recovering compared to gold. Earlier in March, the ratio between the two precious metals jumped above 91 after a two-month rally.

However, that trend suddenly changed with the troubles at Silvergate Bank and Credit Suisse, and silver started to recover against the yellow metal, with the ratio now just below 85. This clearly highlights the solid rebound of silver seen in the last two weeks and its overperformance versus gold.

With a credential background in Economic Finance and International Exchange (MA), his critical analysis of gold and silver markets’ performance is frequently quoted by leading publications, week on week.

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