Silver has found some support at the end of April to reduce some of the losses the metal has suffered over the course of the month.
Having started out trading close to $25 an ounce, a loss of faith in silver has seen it trading much nearer $23 an ounce come the month’s end to levels not seen in 10 weeks.
Today’s gains are a reflection of the prospect of the Federal Reserve potentially having to lower how high it raises interest rates in the coming months in the light of disappointing US GDP growth figures as well as a more optimistic economic outlook following China’s pledge to support its economy.
Live Silver Price Chart – $/oz
This reflects how varying the potential factors impacting on silver’s price can be. In the same light it can be viewed as a hedge against inflation, a safe haven asset yet also one driven by economic sentiment given its industrial exposure and affected by the strength of the US dollar it is priced in as well as whether interest rates are rising or falling.
Having endured a series of losses recently, today’s gains remind investors of silver’s potential upside with its bullish drivers including haven appeal from the war in Ukraine, fundamental demand as countries look to boost solar energy as well as enduring inflation making silver’s ability to hold its value over time attractive. As such it seems likely that silver will once again be challenging $25 an ounce with its current doldrums short-lived.
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