Silver’s attempts to climb back above $19 an ounce have yet to prove successful, further underlying the lack of meaningful support for the precious metal.
Today has brought fresh inflation data from the UK that shows that prices are continuing to rise at an ever faster rate with the peak still not yet reached. While inflation would typically be a supportive factor for silver, this has been heavily outweighed by the actions taken by central banks to try and bring runaway inflation back under control.
Live Silver Price – $/oz
Next week the Federal Reserve is almost certain to raise interest rates by another 75 basis points while today’s UK inflation data has increased the likelihood of the Bank of England implementing its first 50 basis point hike since the bank gained independence from the UK government.
These ever-increasing interest rates have diminished silver’s appeal due to its lack of yield with the fall in price from the highs achieved as recently as mid-March both spectacular and painful for holders of silver. The glimmer of hope is that the declines have certainly slowed with signs that the price may be bottoming out…. But then those words have been said before and proven false dawns!
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