Friday, August 12, 2022

In which direction could the price of silver develop? Here is the expert comment

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Silver ounce prices hit the highest level since June 29, just after US July inflation figures released last Wednesday came in below expectations. While the silver price was in a downtrend on the last trading day of the week; Many experts agree that the main trend in silver prices could be an uptrend.

While the moves by the major central banks (the US Federal Reserve, the European Central Bank, the Bank of England) towards policy hikes are having a direct impact on the precious metals; Silver prices are one of the hardest hit. Also, since silver is used as an industrial material, it is directly affected by global economic growth and recession concerns.

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Markets took a breather as US inflation fell from a 41-year high, falling short of economists’ expectations. The willingness to take risks has increased. While the world dollar weakened on expectations that the US Federal Reserve (Fed) would not hike interest rates quickly; The silver price started to rise due to the reverse correlation effect. Rate hike expectations from the September Fed meeting fell to 50 basis points. However, a rate hike of 75 basis points is still on the table.

While silver is among the worst performing commodities in 2022; This is expected to provide strong support for silver prices as major central banks, particularly the Fed, begin to embark on a more dovish rate hike schedule.

Silver ounces, which had depreciated 13 percent in 2022, ended the previous month up 0.35 percent.

LATEST SILVER PRICES

While silver hit a high of $20.45 per ounce on the last trading day of the week; the lowest was $20.24. As of 1:43 p.m., the ounce of silver is down 20.27, down 0.20 percent.

Where can the direction be in silver prices?  Here is the expert comment

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A gram of silver, on the other hand, is at the level of 11.69 lira with a fall of 0.18 percent in the same minutes. While gram silver prices rose more than 17 percent in 2022; closed the month of July with a gain in value.

Where can the direction be in silver prices?  Here is the expert comment

HOW IS GRAM SILVER CALCULATED?

While silver is priced in units of ounces in the global markets; The change in gram silver price is determined by the ounce silver price and the value of the dollar against the Turkish lira.

For example, as the ounce price of silver increases; if the dollar rate remains constant against the Turkish lira, the price of a gram of silver will increase, or while the price of an ounce of silver will increase; If the dollar depreciates against the Turkish lira, the price of a gram of silver will go down.

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MAIN ROUTE MEASUREMENT POSITIVE IN SILVER
Eral Karayazıcı – Inveo portfolio fund manager

Where can the direction be in silver prices?  Here is the expert comment

Affected by the sell-off in asset prices in the second quarter of the year, silver, which fell from $26 to $18.3, stabilized in July and rose to $20.8.

This week silver, lying horizontally in the 20.20 – 20.60 band, is showing a high correlation with gold.

This financial option, which tested $30 in early 2021, appears to have entered an attempt to end a 1.5-year downtrend.

Undoubtedly, the biggest pressure on gold and silver is rising global interest rates.

Global inflation, which seems to be peaking, is good news in this sense and it is very likely that central banks will complete their rate-hiking cycles after a while.

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From this perspective I think it is very likely that the main route will be moderately positive on the silver front over the next 6 and 12 months; I think $25-26 can be tested in the next 6 months and $30 in the next 12-18 months.

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