Silver’s slight rally earlier in the week hasn’t ended up coming to much with the price now back below $24 an ounce to remain within the narrow range it has been trading at so far this year.
While silver treads water, gold has continued to gain with the ratio between the two precious metals now above 80. Quite why silver has failed to join its precious metal peer in carrying on its strong final quarter of 2022 into this year continues to confound.
This week’s weakening of the US dollar added to the bullish factors for silver, including a strong fundamental case which sees industrial and investment demand outstripping supply, and the prospect of the Federal Reserve soon ending its series of rate hikes, which was the biggest drag on silver’s price in 2022.
With no obvious explanation as to why silver has failed to move higher, the longer it remains so muted, the greater the length of opportunity for an investor to buy ahead of the price rally that will surely come soon.
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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