The silver price jumped by around 10% during November having reached a bottom below $18 in September and is now traded at $21.3-21.4, consolidating recent gains. The performance of silver in November saw the grey metal halving the decline posted in the first ten months of 2022.
The overall economic scenario has changed in the last few weeks, with a slowdown of the greenback and investors forecasting a less hawkish Fed in the next few meetings. We should also point out that silver in November finally outperformed gold.
It almost seems that investors suddenly realised the precious metal was undervalued, particularly considering the strength of demand and growth expectations for the metal in 2023.
From a technical point of view, there are solid support areas between $20.6 and $20.8. In this range are the bottoms reached in May and June, but also the relative peak of August. The silver price is now dancing just above this, consolidating after the recent rallies and seems to be just waiting for catalysts which could further enable its positive momentum.
Of course, any dovish indication coming from this evening’s speech by Fed chairman, Jerome Powell, could be one such catalyst. Vice versa, any hawkish rhetoric could curb the current recovery.
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