Silver continues to trade near its highest level since June even with today’s slight dip caused by a strengthening US Dollar.
Silver has enjoyed a turnaround in fortunes with investors now looking for reasons to drive the price higher after months in which every piece of macroeconomic data was viewed negatively for the precious metal.
Federal Reserve Governor Christopher Waller’s comments over the weekend reminded investors that the US is far from out of the inflation woods and that the US central bank is still some way off stopping increasing its benchmark interest rates. The fact that this has only caused the smallest of dips in silver’s price underlines the change in sentiment for the metal.
From March through to September, every utterance by a Federal Reserve official seemed to spark a fresh plunge for silver but now there is sufficient underlying support for the metal, drawn from its strong fundamental case, that silver can now shrug off these bearish comments.
That said, an environment in which interest rates continue to rise remains a negative factor for silver, but now it seems more likely to slow the pace at which silver’s price rises rather than cause it to fall back to the lows seen in September and October.
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