Silver continues to trade above $21 an ounce with the metal going through a consolidatory phase awaiting a fresh catalyst to drive the price.
Silver is caught between a strong fundamental outlook that suggests its price should be far higher, with another record year of demand in prospect, set against a macroeconomic picture in which interest rates are likely to continue rising for a while yet.
As such, Federal Reserve Chair Jerome Powell’s comments later this week will be highly instructive for silver investors, who will be analysing his speech to determine where the interest rate curve of the US central bank is headed. After some optimism about an early pivot earlier in November, Powell could well deliver a reality check about the need to maintain interest rate hikes well into 2023.
However, if Powell’s comments prove more dovish then silver is primed for another rally, having built up sufficient support above $21 an ounce to climb again and recover more of the ground lost in the metal’s multi-month plunge from April through to September.
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.