Silver’s February slump looks to have stopped with the metal finding support above $21.50 an ounce to now be making small gains.
Silver has had a curious start to the year so far with the price first treading water before this month’s decline despite the fundamental outlook pointing to the precious metal continuing the recovery it started in the final quarter of 2022.
Today brings the release of the latest minutes of the Federal Open Market Committee with investors keen to gain insights into the US central bank’s thinking behind the recent 25 basis point interest rate increase as well as the Fed’s outlook for future moves. Silver found itself out of favour for much of 2022 as a result of the Fed’s series of large interest rate hikes so holders of the metal will be hoping the minutes strike a more conciliatory tone about the prospect of a return to 50 basis point hikes.
The fact that silver is making gains, however small they may be, even though its precious metal peer gold continues to slide, suggests that silver has found its floor and raises the prospect of the metal’s strong fundamental case once again receiving the attention it deserves.
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