Posted 24th Ekim 2022

Weaker US Dollar Helps Silver to Rebound Above $19

silver bars kag

The slowdown of the US dollar and the stock market rebound seen in the last few hours of the previous week triggered a quick rally of the silver price. The precious metal rebounded from $18.5 to $19.4, before slightly declining in the early trading this morning to $19.25. 

Despite the recent rebound, the silver price is still posting a 20% loss on its year-to-date performance. Additionally, the comparison with gold is showing relative weakness, as the yellow metal lost around 10% less, while the gold/silver ratio jumped to 89.

On the other hand, this situation could be seen as an opportunity. Indeed, the ratio between the two metals is well above the historical average. Moreover, from a fundamental side, the demand for silver is expected to remain solid in the next few years.

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.