Silver’s Recovery Stutters But Outlook Still Leaves Plenty of Scope for Renewed Gains

Silver’s recent run of gains has temporarily stalled with the price slipping back below $22 an ounce. Investors are currently assessing the true value of assets after a brutal sell-off has left some sectors undervalued, including silver.

The weaker US dollar has helped silver gain over recent days with Wednesday bringing a slight step back with equities, instead of the focus on today’s reappraisal. Given the global importance of the US economy, the release of the latest minutes of the Federal Open Market Committee later today will be closely scrutinised to better understand the likely trajectory and severity of the central bank’s interest rate moves in the coming months.

Live Silver Price – $/oz

The shift in policy by the Fed was the major catalyst for silver’s slump from mid-April to mid-May so silver investors will be fearful of a negative reaction should the FOMC minutes be deemed overly hawkish.

On the other hand, if the minutes don’t bring fresh pain for non-yield bearing assets such as silver, the broader outlook for the metal remains constructive and despite today’s slight shift down, a recovery back to $25 an ounce for silver in the coming months remains possible.

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 greenwashing while investing sustainably.

This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.