Silver is trading at the bottom end of the narrow range either side of $24 an ounce that the precious metal has been stuck in at the start of 2023.
This week brought confirmation of rate hikes by the Federal Reserve, the Bank of England and the European Central Bank but with these moves long-anticipated, it had little impact on the price of silver.
Silver remains in this curious position where the macroeconomic picture looks favourable, with the prospect of the Fed soon stopping its rate hikes and fears of a recession receding, and a strong fundamental case in which industrial demand is very strong and causing the metal to be pulled out of holdings. Yet despite this bullish outlook, silver has barely moved since the middle of December and in fact rather than continue its rally that started in mid-October, the price is actually down a fraction from where it started the year.
For those investors expecting silver to fly away this year, it has proven a frustrating opening month but the outlook remains positive and it still holds true that the chance of silver reaching $30 an ounce remains likelier than it sinking to $20 an ounce this year.
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