The threshold of $19 an ounce is proving to be a strong resistance level for silver with the metal failing to climb back above this level even in a week, where the strength of the bearish factors that have been pulling the price down, have eased a bit.
A slightly weaker dollar provided relief to equity markets as well as all those commodities priced in the US currency but still silver finds itself stubbornly below $19 an ounce at around $18.75 an ounce.
This highlights how much the metal has fallen out of favour with investors with the prospect of another large interest rate hike by the Federal Reserve next week diminishing silver’s short-term appeal further still.
Live Silver Price – $/oz
The glimmer of hope for silver investors is that while the price might not be making significant gains, it is at least not dropping, which given the series of painful weeks the metal has endured since mid-April is something worth toasting.
Once this large cloud finally lifts from silver’s outlook, the fundamental picture remains supportive so for those brave enough to buy now, this could be a pivotal moment that marks the start of silver’s long overdue recovery.
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