@EScott54 on XAGUSD | PriceONN Community
The news regarding oil-driven inflation fears certainly seems to be weighing on silver, as noted in the recent headlines. It's not entirely surprising, given silver's dual role as both a precious metal and an industrial commodity. The expectation of higher interest rates to combat inflation is likely dampening investor appetite for non-yielding assets like silver.
One must wonder, however, if this is an overreaction. Silver's industrial demand could provide a floor, but for how long? Prudent investors should consider the impact of rising energy costs on overall economic activity before making any rash decisions.
One must wonder, however, if this is an overreaction. Silver's industrial demand could provide a floor, but for how long? Prudent investors should consider the impact of rising energy costs on overall economic activity before making any rash decisions.