Silver declined to below $21 an ounce, closing in on a 23-month low of $20.4 hit in May as the Fed and other major central banks around the world raise interest rates to tackle inflation threatening further the global economy. The Federal Reserve hiked the Fed funds rate by 75bps and Chair Powell signaled a similar move is on the table at the next meeting, while the Bank of England raised rates for the 5th time and the Swiss National Bank raised borrowing costs for the first time since 2007. The ECB is expected to increase interest rates into positive territory in Q3, starting with a 25bps hike in July. At the same time, investors worry about global growth amid the war in Europe, persistent supply chain issues, and the spread of Covid-19 in China.
Historically, Silver reached an all time high of 49.51 in April of 2011. Silver - data, forecasts, historical chart - was last updated on June of 2022.
Silver is expected to trade at 21.25 USD/t. oz by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 20.08 in 12 months time.