Silver is striding towards $21 an ounce after a slight weakening in the US Dollar gave the metal sufficient wiggle room for its strong fundamental case to gain more prominence.
Silver’s recent price action has shown a metal desperate to climb significantly higher than its current levels but having to overcome considerable pressure from ever-rising interest rates in order to do so.
Last week brought large interest rate hikes by both the Federal Reserve and the Bank of England yet silver was still able to make a weekly gain. Considering it was the Fed’s signalling and subsequent implementation of a series of interest rate hikes from April onwards that triggered a multi-month plunge for silver, the fact the price is able to make gains even with rate hikes continuing highlights the switching of focus to the longer-term outlook for the metal rather than short-term concerns.
If this week’s US midterm elections provide a negative reaction for the US dollar, then silver could make further gains with strong support clearly mounting behind the metal to try and recover all of the losses since March.
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