The silver price graph is finally showing an upward move with the price edging back up towards $22 an ounce, having lost over $2 an ounce since the start of February.
A pause in the strengthening of the US dollar allied to a quieter day of macroeconomic data has given silver the opportunity to recover some of the ground it has lost in recent weeks on the prospect of the Federal Reserve hiking interest rates for longer and higher than previously anticipated.
While the likelihood of more Fed hikes hasn’t changed, silver had more punishment meted out to it than its fundamental outlook reflected – indicating there is plenty of upside room for the metal to make further gains.
However, while the short-term outlook remains clouded by persistent inflation concerns and the need to curb that with more interest rate increases, silver is unlikely to fulfil its true potential.
The release of the latest Federal Open Market Committee meeting minutes on Wednesday will provide good insight into the rationale behind the Fed’s interest rate move at the start of this month as well as how the committee sees further decisions going.
Silver investors will be hoping these minutes prove more dovish than the recent hawkish comments by the likes of Loretta Mester and Jim Bullard to give the price further light relief.
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