Uncertain Path Ahead: Will Silver Regain Historic Highs?

The financial market is always keenly interested in the fluctuations of commodity prices, and silver, a crucial metal in the global economy, is no exception. In recent months, the price of silver has exhibited remarkable volatility, surging to a high of over $26 per ounce in April before retracing back to the $22 level. This intriguing situation prompts us to ponder what lies ahead for this precious metal. Will silver have the opportunity to revisit historic highs?

To shed light on this matter, we turn to the expertise of renowned financial analyst, Walid Koudmani. With his extensive knowledge and insights into market dynamics, Koudmani delves into the various factors that could influence the future trajectory of silver prices in the coming months.

FXMAG.COM:

The silver price has made a retreat back to the area of $22 per ounce. What's next for the metal - does it have a chance to head toward historic highs?

Walid Koudmani:

The price of silver has been very volatile in recent months, reaching a high of over $26 per ounce in April before falling back to the $22 level and the situation continues to be interesting. There are a few factors that could influence the price of silver in the coming months.

First, the global economy is facing a number of headwinds, including rising inflation, slowing growth, and the ongoing war in Ukraine which could weigh on demand for silver, as investors may turn to other assets, such as gold, for safety. Second, the Federal Reserve is expected to continue raising interest rates in an effort to combat inflation even though it seems to be nearing the end of its cycle which could also put pressure on the price of silver, as higher interest rates make it more expensive to borrow money and invest in commodities.

However, there are also some factors that could support the price of silver in the coming months since silver is a relatively rare metal, and demand for it is expected to grow in the coming years as the global economy focuses on electric energy which utilizes the metal for many of the components needed in those devices such as batteries. Second, silver is often used in industrial applications, such as electronics and solar panels and as these industries grow, demand for silver is likely to increase.

Overall, the outlook for the silver price in the coming months is uncertain as the metal is facing a number of obstacles while there are some things that point to some potential room for growth.It is too early to say whether silver will reach historic highs, but it is certainly a metal to watch in the coming months.

Walid Koudmani

Market Analyst working in UK-Italian-Arabic markets covering a broad range of assets including stocks, commodities, FX and crypto. English, Italian and Arabic Speaker with a B.A in Business Management. Quoted in many prestigious publications including the Guardian, Barrons and Lefigaro and winner of bloomberg top forecast rank Q-2/Q-3 2020.