The price of silver has been in the news lately due to its recent upward trajectory over the past few weeks. On Tuesday, the white metal struggled to find a firm intraday direction, seesawing between tepid gains and minor losses through the first half of the European session. Currently hovering around the $23.00 round-figure mark, silver appears to be nearly unchanged for the day. In this article, we will take a closer look at the current state of the silver market, its recent performance, and what factors are driving the price of silver.
Factors Driving the Price of Silver:
There are several factors that are driving the price of silver, including:
Industrial Demand – Silver is a crucial component in various industrial applications, including electronics, solar panels, and medical equipment. As the global economy recovers from the pandemic-induced recession, the demand for these products is increasing, which is driving up the demand for silver.
Inflation Expectations – Inflation expectations have been rising globally due to the massive stimulus packages implemented by governments and central banks. Investors are turning to silver as a hedge against inflation, which is driving up the demand for the white metal.
Weak Dollar – The US dollar has been weakening against other major currencies due to the low-interest rate environment and massive stimulus measures. As the dollar weakens, the price of silver denominated in dollars increases, making it more expensive for buyers outside the US.
Over the past few weeks, the price of silver has been on an upward trajectory, with the white metal gaining nearly 10% since the beginning of March. This bullish run has been fueled by the factors mentioned above, as well as increasing retail demand for physical silver.
Silver investors have also been closely watching the movements of the price of gold, which has been volatile over the same period. Gold is often seen as a safe-haven asset, but its recent fluctuations have caused some investors to turn to silver instead.
Looking ahead, the outlook for the price of silver appears to be positive. The factors driving the demand for silver are expected to continue, and there are no signs of a significant slowdown in the global economy. Additionally, the current low-interest-rate environment is likely to persist, which will continue to support the price of silver.
In conclusion, the price of silver has been on an upward trajectory over the past few weeks, seesawing on Tuesday near the $23.00 mark. The demand for silver is being driven by several factors, including industrial demand, inflation expectations, and a weak US dollar. With a positive outlook for the global economy and continued low-interest rates, the price of silver is expected to remain strong in the near future