Silver has dropped back to the lower reaches of $23 an ounce after recent comments from Federal Reserve officials pointed to the need for interest rates to keep rising to ensure inflation is kept fully back under control.
Despite this slight recent dip, the outlook for silver remains healthy as the strong fundamental case that has driven the precious metal’s recovery since September shows no sign of weakening any time soon. Indeed, silver’s price trajectory since its September nadir has been one of steady upward gains interspersed with short-term price dips as the market builds up sufficient support for the next move higher.
Today brings another key data point out of the US with the release of the non-farm payrolls report with silver investors hopeful that it will show the world’s largest economy is still holding up well despite the dual threats of rising interest rates and high inflation. Given silver’s more industrial exposure than gold, a strong economy is important to ensure that industrial demand remains high. That said, the energy transition and the tech revolution, the two main sectors silver is used in, are likely to continue irrespective of short-term economic concerns so silver should be able to shrug off an economic downturn better than other commodities.
Assuming today’s jobs data doesn’t have any shocks in store, silver is likely to resume its upward trajectory with last year’s high above $26 an ounce the first major target for this shiny metal with a shiny outlook.
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