Posted 12th August 2022

Silver Shows Strength of Support at $20 as Markets Assess True State of Global Economy

silver kinesis metal

Silver is still trading above $20 an ounce with the volatility that the precious metal can be prone to experiencing has calmed for the time being as investors assess what the dominant factor is.

Figures out earlier in the week increased optimism that inflation may have peaked in the US, giving broader markets a boost as well as reining in expectations of how aggressive the Federal Reserve will need to be on future interest rate moves to bring inflation back to its 2% target.

Silver’s complex mix of potential roles as a haven asset, an industrial metal and a store of value over time have left it largely standing still. If the global economy is headed for recession then that will crimp industrial demand, a potential negative for silver, yet equally a recession may see investors return to the traditional haven assets such as silver.

For now, silver investors will be grateful to see the strength of support that there clearly now is for the precious metal with $20 an ounce an important support level. How much higher it can climb will be largely dependent on how aggressive the Fed’s future rate hikes prove to be as there remains a lot of upward potential for silver if you consider where it was trading just a few months ago.


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