Silver is ending a broadly positive week of trading for the metal on a slight downward note as the price consolidates after its recent sharp move higher.
The medium-term outlook for silver remains favourable with the metal a key commodity in the energy transition that has resulted in demand outstripping supply for a number of years with the trend set to continue for a good while yet.
Now with the macroeconomic environment turning more favourable for silver, the Federal Reserve’s highly-anticipated interest rate hike next week is potentially the last one of the current cycle. Seeing as the Fed’s series of aggressive hikes has been the single biggest headwind for silver in the last year or so, the end of this hawkish stance is hugely positive for the precious metal.
With this in mind, today’s slight dip is more likely to be a short-term blip ahead of a sustained move higher with $25 an ounce an obvious first target, followed by $26 and ultimately the highs of both this year and last a little above that threshold.
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