Silver has enjoyed a positive start to December and is now comfortably above $22 an ounce at levels last seen in early May. Silver has been primed for a rally ever since it hit its year low in September with a strong fundamental case desperate to be heard.
The fact silver has struggled thus far to make more significant gains illustrates how strongly the interest rate hikes by the Federal Reserve, and other central banks around the world, have weighed on the precious metal’s price.
Now as investors look past another likely hike by the Fed later this month and ahead to when the US central bank may stop raising rates, the US dollar has weakened a fraction and given silver, and all those commodities priced in the greenback, a boost.
Today’s US jobs data will be a significant data point for silver but in a different way to its precious metal peer gold as silver’s industrial appeal will mean it will want to see strong employment figures and no sign of an imminent US recession. Assuming this proves the case then silver looks well set to make up further lost ground since its plunge from the $26 an ounce level reached in March.
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.
