Silver has continued to track steadily higher to now be trading well above $25 an ounce to now be nearing $26 an ounce.
Prior to silver’s surge earlier in the month, the precious metal hadn’t broken through $26 since the summer of 2021, so its latest gains come from an already elevated base and illustrate the strength of investor support for silver.
Silver is benefiting from its appeal as a haven asset as well as a proven store of value over time in the wake of the war in Ukraine and fast-rising inflation globally. How much higher silver can climb, and whether it can surpass the highs achieved a few weeks ago will be determined by the approach by central banks to tackle rising inflation.
The Federal Reserve and the Bank of England have already initiated their strategy of increasing interest rates with a series of further hikes forecast over the course of the year. This is likely to reduce the appeal for non-yield bearing assets such as silver and gold and cap how high silver can go.
That said, silver’s fundamental outlook remains bullish with the metal already illustrating there is strong support underpinning it with how quickly it has rebounded back above $25 an ounce on the three occasions it recently dipped below that threshold.
So with $25 providing a strong support, silver investors will be looking at upward resistances rather than worrying about how far it might fall.
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