Silver is climbing back up towards $24 an ounce following comments from Federal Reserve Bank of Philadelphia President Patrick Harker that indicated a pause on interest rate increases is the likeliest outcome of the committee’s meeting later this month.
Given that the Fed’s series of interest rate hikes was the single biggest headwind for silver in the last year or so, the prospect of rates now having peaked will give the metal much more space to breathe.
With the US looking now to have avoided defaulting on its debt and strong job numbers expected out of the country later today, the focus can now switch to silver’s strong industrial outlook where demand for the metal is greater than its supply.
After an ultimately disappointing May, June could be the month where the silver price gets moving with the May peak above $26 an ounce the obvious major first target. With the macroeconomic factors finally starting to align in silver’s favour, the next few months could be the start of a sustained silver surge.
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