Silver’s good run continues with the metal pushing above $21 an ounce and now looking up to the next target.
A slight weakening in the US dollar has given silver the push it had been waiting for after investor support for the metal had been building up considerably from October onwards. The fundamental case for silver has always remained strong, with the metal needed in key areas of the energy transition such as in photovoltaics for solar energy and in batteries for electric vehicles.
However, this bullish fundamental picture had been overshadowed by the Federal Reserve’s series of interest rate hikes it has implemented over the last six months.
Silver’s price had sunk to its lowest levels in more than two years at its nadir in early September but since then it has made a continued effort to recover some of those losses.
With expectation mounting that the Fed’s interest rate hikes may slow in the coming months, the path has been laid for silver to make significant gains from now onwards. The question is more whether it can reach $30 an ounce rather than any concerns about downside supports.
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