Recent action in the gold/silver ratio “means that silver is outpacing gold after months of lagging behind. The white metal is up 2.3 percent this month to $14.53 an ounce, compared with a 1.1 percent advance in bullion,” according to Bloomberg.
Looking ahead, silver and other precious metals may continue to face an uphill struggle as the Federal Reserve is expected to raise interest rates this month, which makes non-yielding assets like commodities less attractive. However, it is possible the Fed slows its pace of rate hikes next, potentially weighing on the dollar in the process. A weaker dollar could boost silver and other commodities.
For more information on the silver market, visit our silver category.