After successfully rallying back above $25 an ounce on the four recent previous occasions that silver fell below this threshold, its fifth decline is proving harder to rebound from.
The main pressure comes from the continuation of talks between Ukraine and Russia aiding hopes that peace can be achieved and a swift end brought to the fighting that has now been going on for over a month. Add in the prospect of rising interest rates in the US and Europe and silver currently has two significant bearish factors pulling its price down.
Yet despite its recent declines, silver remains at a level far above where it was trading for the majority of the second half of 2021. As the fear trading that followed Russia’s invasion of Ukraine starts to unwind, haven assets like silver have lost some of their appeal.
However, with the war far from over, any escalation in fighting or failures in peace talks could quickly see a renewed rush to safe havens as market confidence remains fragile.
So far, silver has traded in close correlation with gold and has been pulled up and down by the same factors. But should greater focus be placed on silver’s industrial appeal and the forecast for record demand this year, then silver could break away and climb while gold treads water.
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Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.
As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwash while investing sustainably.
