Silver is closing in on $20 an ounce as it climbs to its highest level since early October.
An easing in the expectation for how hard and for how long the Federal Reserve will keep up its aggressive interest rate hikes has provided silver with sufficient light relief for the price to recover most of the ground it had lost over October.
A less aggressive Fed reduces the pressure that the non-yield bearing silver has faced in the wake of ever rising interest rates and has allowed the metal’s strong fundamental outlook to gain more prominence.
It will be interesting to see silver’s price reaction as and when it breaches $20 an ounce as while the fundamental picture points to a metal in strong demand, the price has failed to match up to this and instead found stubborn resistance between $20 to $21 an ounce due to the Fed’s interest rate outlook.
With that trajectory potentially easing, will silver finally get its chance to shine and take the opportunity to recover all of the ground it has lost since April?
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