Posted 10th April 2024

Silver Price News: Silver Hits Highest Price Since May 2021

Silver prices rose to their highest in almost three years on Tuesday, taking a lead from gold prices which set another all-time high.

Silver prices traded comfortably above $27.80 an ounce for most of the day on Tuesday and briefly rose as high as $28.36 an ounce – the highest price since May 2021.

Kinesis Exchange KAG/USD 1-hourly

Silver prices have undoubtedly benefited from gold’s recent performance, with the yellow metal marking a fresh all-time high of $2,365 an ounce on Tuesday.

In addition, recent analyst reports have focused on inflows into the market for silver ETFs over the last few weeks, which may have supported the recent gains. Added to that, the US dollar has fallen against other major currencies since the start of April, supporting dollar-priced assets like gold and silver.

High rates of inflation have prompted concerns over the risks of holding currency, boosting the appeal of hard assets whose supply cannot be increased by governments, and this has only been exacerbated by heightened global geopolitical tensions which have supported gold and silver prices by driving investment away from risky assets toward perceived safe havens.

That said, the steepness of silver’s ascent thus far in April may indicate that a pull-back in prices is now more likely, based on similar bullish price moves over the last three years.

Looking ahead, the markets will be watching out for monthly US inflation figures due out on Wednesday as well as US producer prices on Thursday, for a handle on the state of the economy. Thursday will also see an interest rate decision by the ECB, with all bets on a continuation of the current 4.5% rate for the time being.

Frank’s experience covering the commodities markets spans 22 years, with a particular specialism in metals, carbon and energy markets. He has worked as a senior editor for S&P Global Commodity Insights (formerly Platts) and before this, at ICIS-LOR, a part of Reed Business Information (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.

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