Silver Price News: Silver Drifts As Rate Hikes Offset Strong Industrial Demand

Silver is still waiting for a fresh catalyst to shake it out of its sideways drift a little below $23 an ounce. 

Surging global demand for silver from the solar industry will lead to another supply deficit this year for the metal yet silver’s strong fundamental case is failing to gain sufficient traction in the face of rising interest rates around the world.

The Federal Reserve looks set for another couple of hikes in order to ensure inflation shrinks back to its 2% target and this is weighing on silver’s ability to climb higher as the metal’s lack of yield make it less attractive to investors at times of rising interest rates.

Right now, the healthy demand outlook for silver and the prospect of further interest rate hikes are both well known by investors and this is resulting in a silver price that is standing still. Therefore, it will take a surprise move, or perhaps a lack of a move, by the Fed or another major central bank to shake silver out of its summer slumber. 

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.

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