Expert silver market insights
Our quarterly silver outlook is published in our Quarterly Metals Report, which covers base, precious and ferrous metals. The impact of supply and demand fundamentals and macroeconomic implications for silver is analysed. Our research team produce silver price range forecasts as part of the report.
Silver Outlook – Q2 2023
Silver fluctuated throughout the quarter, with its safe-haven qualities weighing on overall performance amid banking sector turmoil, and the metal closed the first month of Q2 at $25.06/oz. In line with gold, expectations of Fed’s interest rate decisions had an impact on the price of the metal, with investors watching out for signs of the end of the tightening campaign. Although we do not expect a pivot to take place before Q4, dovish stance by the Fed is likely to provide a strong case for silver, albeit to a lesser extent than its gold counterpart...
The rally we saw in the first weeks of 2023 has stalled, and sentiment deteriorated since, especially in early May. Strong momentum out of China is absent, but recovery out of the region is underway, with services continuing to outperform. Downstream activity improved amid traditional peak season, but buyers have mostly purchased on the dip as needed. The demand outlook continues to struggle, with end-users showing continued softness in the goods’ sales. While this should lead to further easing in the supply chain issues we have witnessed in the last couple of years, looming recessionary fears are weighing on our demand outlook. With the key central banks ending their monetary policy tightening cycle, the focus is poised to shift away from inflation-centric data to fundamentals, such as economic growth and consumer performance. The historically weaker dollar should provide robust support for metals, but with the lack of a strong incentive, we struggle to see base metals significantly higher in Q2 2023.
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