Silver is still just about holding above $20 an ounce despite a negative price performance so far this week.
For a metal that is often prone to bouts of volatility, silver’s price has traded in a very narrow range just above $20 an ounce so far in August. This underlines the strength of support that silver has now built up around this threshold as well as reflecting the fact the macroeconomic picture hasn’t dramatically changed in recent weeks.
Inflation remains a concern, as shown by today’s high figure out of the UK, with central banks likely to continue implementing a series of interest rate hikes to curb rising prices. Equally, the juggling act central bankers face in curbing inflation while not tipping an economy into recession was evidenced earlier in the week with China’s surprise rate cut following a slowdown in the country’s economy.
Insight into how the US is seeking to balance these dual concerns will be available later today with the release of the minutes of the Federal Open Market Committee’s latest meeting. Silver investors will be hoping these minutes point to fewer interest rate rises now needed in the US with the metal very reactive to the actions of the Fed with silver’s multi-month price plunge from April to July triggered by the change to a hawkish approach by the US central bank.
Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.
As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwash while investing sustainably.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.