Silver’s largely boring start to the year continues with the price continuing to oscillate within its narrow range either side of $24 an ounce.
It is now clear that silver investors and traders are waiting for a fresh catalyst to drive the price as the underlying case for the precious metal remains solid. The prospect of a more dovish Federal Reserve has already been priced in, albeit with a much less marked price reaction than for silver’s precious metal peer gold. Equally, the fundamental picture in which strong industrial demand is likely to prompt a third year of deficit as mining and recycling fails to keep pace. Furthermore, while today’s weaker US dollar will undoubtedly be a boost for silver, given it is typically priced in the US currency, the greenback’s peak came some months ago so the day-to-day changes don’t seem to be having a material impact.
As such, silver finds itself trading at a healthy level considering where it was back in September but still frustrating those bulls who see plenty of reasons for the price to climb much higher yet and challenge both the high of last year above $26 an ounce and then potentially continue up towards $30.
One factor that could raise silver out of its current slumber is the receding likelihood of a global recession this year. If this theme continues and more data lands to support it then this could further boost industrial demand for the metal and give it the kick start the price needs.
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