Silver’s Struggles Continue as Strong Dollar Pushes Price Down to 2-Year Lows

Silver’s struggles are showing no sign of easing any time soon with the metal trading below $20 an ounce, near its lowest level in two years. 

The implementation of interest rate hikes by central banks on both sides of the Atlantic as well as the prospect of more increases to come have been the key factor in silver’s slide from close to $26 an ounce down to below $20 in the space of two and a half months.

Live Silver Price – $/oz

Today is likely to see reduced market activity with the US holiday for Independence Day. However a note of caution that sometimes these reduced volumes can lead to disproportionately volatile price action with silver an asset that can be particularly prone to these outsized moves. 

The strengthening of the US dollar in the light of the Federal Reserve’s adoption of hawkish monetary policy is the latest factor piling pressure on silver and it is difficult to point to any short-term factor to provide silver investors with cause for optimism. Over the course of the last few months, silver has failed to rally on any support but surely with the metal now at 2-year lows that floor must soon be arriving? 

As soon as that bottom is finally reached, the medium-term outlook is far more promising for silver so for a brave investor these low current price levels represent good long-term value.

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 greenwash 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.