Silver is enjoying the opportunity for the metal’s strong fundamental case to be heard with a weaker US dollar and the prospect of a more dovish Federal Reserve helping push silver’s price above $23 an ounce to near its highest in more than seven months.
After silver suffered a multi-month slump from April through to September, the precious metal is now on a multi-month surge and has recovered over half of its losses after this positive reversal of fortunes.
Silver is in hot demand as a key metal needed for the energy transition used in both the solar and electric vehicle industries. Demand has been on the rise across all sectors, including investment, bar and coin and industry, setting 2022 on course to be a record year. Yet the price has been unable to reflect this strong fundamental outlook as investors instead focused on the Fed’s implementation of a series of large interest rate hikes as well as the strength of the US dollar as a result.
Now those bearish factors are waning, silver has the chance to stage a sustained rally and can turn a year in which it looked certain to be a down year for the metal into an up year.
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