Silver is continuing to hold above $20 an ounce as the market awaits the key macroeconomic event of the day, the release of the latest US inflation figures.
The fact that silver has now been able to hold above this significant threshold for a number of days points to a market in which support is slowly returning and the lows reached in July were indeed the bottom for the price.
However, today could yet rock silver’s boat if the US inflation figure disappoints and shows that rising consumer prices haven’t yet peaked. The expectation is that July’s figure will come in lower than June and ease the pressure on the Federal Reserve on how aggressive it needs to hike interest rates in the coming months.
As silver’s fortunes have been so tied to the actions of the Fed in the last few months, there will remain some jitters in the market before that CPI figure lands. If silver can hold above $20 after today then the strength of silver’s recent resurgence will be underlined and the focus can start switching to silver’s positive fundamental outlook.
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