Silver has slipped below $25 an ounce on a day when traders are seeing the positives from a resilient earnings season against a backdrop of the ongoing conflict in Ukraine and an escalating inflationary environment.
It will be interesting to see silver’s reaction having fallen below this significant threshold as on most of the recent times it has dropped below $25, a wave of buying swept in to bump it back above this level. And while today may be seeing silver come under pressure, the wider outlook remains very bullish for the metal.
Live Silver Price Chart – $/oz
Sadly Russia’s aggression and destruction in Ukraine show no sign of ending anytime soon with the city of Mariupol now nearly entirely flattened in the face of fierce resistance by the Ukrainians still holding out. The risk of further escalation, including the use of chemical or nuclear weapons by Russia, seems a likelier short-term outcome rather than a peace agreement being struck, increasing the appeal of haven assets such as silver.
Add in silver’s appeal as a hedge against inflation as well as the fundamental demand for the metal for its industrial application in solar energy and other technologies and it points to silver quickly rising again.
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