Despite the recent rebound, the phase of weakness continues for silver, which at the moment is moving just above par at $ 20.63 per ounce. In 2022, silver was the worst performing precious metal with a 12% loss, but now prices may have fallen enough to trigger a physiological recovery. In the last two months alone, silver has lost more than 8%, reaching a new low in the area of $ 18 / ounce with the session of 14 July and the recent drops have been pushed by a stronger US dollar, but also by the rising interest rates and slowing growth.
However, as James Steel, an analyst at HSBC, notes, silver prices could rise from the end of this year as the electronics and photovoltaic sectors act as a driving force for industrial consumption, and in the meantime the demand for jewelry. remains strong despite the many elements of concern.
Thanks to its conductivity, malleability and ductility, silver is widely used in industry, in fact, over 50% of the world demand for silver comes from the production chain. Among the various fields of application of silver we have the production of batteries, semiconductors, but also smartphones, photovoltaic panels and water purification systems.
At the same time, according to Steel, the drop in the price of silver will stimulate demand from China and India, major consumers of white metal.
HSBC maintains a bullish view on silver, although it has cut its estimate for 2022 now seen at $ 22.25, while silver is expected to average $ 23.50 for 2023. On the contrary, the UBS group estimates that silver will continue to show weakness in the coming months, returning towards $ 19 / ounce by the beginning of 2023.
Meanwhile, gold moves up by 0.18%, thus finding itself close to the resistance level at $ 1800 / ounce.