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.
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