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.
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