Silver’s recent good run has had a temporary setback as investors take stock of the global economic picture ahead of next week’s Federal Reserve interest rate meeting.
Although silver’s price has dropped back from $23 an ounce to nearer $22 an ounce, the metal remains well-supported now that its strong fundamental case is finally getting the chance to be heard.
Jitters over the likelihood of a global recession next year have hit market confidence but while silver is certainly exposed to an economic slowdown given its industrial appeal, it may be insulated from the worst of any downturn given its prominence in the key sector of our time, the energy transition.
The demand outlook looks so strong across all segments of the silver market that even a slight dip would still see the metal on course for another stellar year in 2023. Headwinds such as the threat of more interest rate increases from the Fed and other central banks across the world remain but silver now looks to have built up sufficiently solid support that it would take more than the odd negative data point to undo its price recovery since the September nadir.
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