Silver Price News: Silver Above $23 Amid Hope of Peak Interest Rates

Silver is holding above $23 an ounce in early trading on a day that is expected to bring a pause on interest rates by the Federal Reserve.

For silver, the prospect of the Fed’s long run of interest rate hikes finally drawing to a close will be supportive for the price as it was the adoption of this hawkish stance back in April last year that saw silver endure a multi-month price slump with the price remaining fairly subdued ever since.

This macroeconomic headwind more than offset any potential gains for silver from the strength of its fundamental outlook, in which industrial demand is outpacing supply. With the latest inflation figures out of the UK also showing consumer prices rising at a slower pace than anticipated, we could be nearing peak interest rates on both sides of the Atlantic and this could provide silver’s opportunity to shine.

If attention does finally switch back to silver’s industrial outlook, with the metal’s excellent conductivity making it a key component of the energy transition, then the price could quickly surge up to $26 ounce to challenge the highs of both this year and last with an ultimate target of $30 possible.