Silver is trading just above $23 an ounce after showing signs of support around that threshold after sliding below it yesterday.
While silver remains out of favour, with the prospect of the US debt ceiling talks finally reaching an agreement reducing the need for haven assets such as the precious metal, the price has slid to levels that don’t match up to its fundamental outlook.
As a result, it will be interesting to see how strong the support is around $23 an ounce and whether this proves to be the level at which silver’s $3 slide since peaking above $26 earlier in the month finally stalls.
Certainly, there are enough reasons to have a constructive view on silver with the metal a key component in the energy transition and therefore as part of the US President Joe Biden’s Inflation Reduction Act that is forming part of the country’s debt talks. Also with the Federal Reserve close to or potentially already at the end of its interest rate hiking cycle then the biggest headwind for silver in the last year or so has been becalmed.
So while silver may be lacking in short-term popularity, the longer-term appeal is certainly there and should stop the price from sliding any further.
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