Posted 13th July 2022

Silver Is Showing Signs That Nadir Has Been Reached as It Tries to Climb Back Above $19

silver bar bullion

Silver failed to hold above $19 an ounce and is now trading at levels last seen two years ago. However, Wednesday brings a glimmer of optimism with the price pointing upwards and attempting to climb back above $19. 

Investors’ attention will be trained on the US inflation figure out later today which will give an indication of how serious a problem these fast-rising consumer prices are becoming. With inflation having long since proven to be far from transitory, the question has changed to when inflation will peak with today’s figure expected to come in higher than May’s print.

Live Silver Price – $/oz

It is this combination of high inflation and the subsequent measures by central banks to tackle it by increasing interest rates that have caused silver to plummet over the last three months. By now, having suffered a series of weekly declines, silver is starting to show signs that the end of the pain may be in sight with the price stabilising around $19 an ounce.

With silver having fallen out of favour so spectacularly, it will need to climb back above $19 as quickly as possible to give greater weight to the theory that it may finally have reached its nadir and attention can instead focus on the positive medium-term fundamental outlook for the metal.

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