Silver’s sideways drift continues with the price firmly stuck in the dollar range either side of $24 an ounce that has been its trading territory for over a month now.
The contrast between gold’s strong start to 2023, which now looks to have peaked, and silver’s lack of price action is curious as the case for silver is undoubtedly stronger than it is for gold.
With silver in hot demand from the solar industry as well as for electric vehicles and for the tech sector, the fundamental outlook shows a metal that is likely to be in supply deficit for a third consecutive year. And while silver is driven by more than just pure fundamentals, the macroeconomic outlook also looks supportive with the Federal Reserve expected to end its series of interest rate hikes at some point this year while fears of a global recession have started to recede slightly in recent weeks.
Yet silver fails to capture investors’ imagination with the price stubbornly holding its ground. However, the question isn’t whether silver will go up this year, it is rather how fast and how high will it go when the price finally sparks into life. While it has been a frustrating start to the year for those expecting silver to soar, the prospect of silver breaking new ground this year remains the likeliest outcome.
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