Friday , 19 July 2024
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Global Economy

How could silver prices move in 2022?

While the ounce price of silver closed the year 2021 with a loss of value close to 12 percent; It followed a fluctuating course between 30 dollars and 21 dollars throughout the year. The main player in this movement of silver was undoubtedly the US Federal Reserve (Fed).

The US Federal Reserve started tapering in November 2021 due to the unpredictable rise in inflation. In December, however, as inflation increased to the peak of 39 years, the tapering rate increased; He signaled that 3 interest rate hikes could be made in 2022. While this situation causes the dollar to strengthen in the world; Commodities came under pressure due to the inverse correlation effect.

While many economists expect this pressure to continue in 2022, the picture is expected to become a little clearer on the commodities side after the Fed’s first rate hike. While the forecasts for the Fed’s first rate hike point to May; Inflation and employment data coming from the US will be decisive for the Fed’s decisions.

We, Financial Consulting Co-Founder Murat Özsoy, regarding the effect of the Fed’s interest rate hike timing on Silver Prices, said, “I think we can see some pricing that tests even above the $25 levels, if the Fed’s interest rate hike is delayed until after May.” .

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Silver, which is also used for industrial purposes, will also be positively affected by the decisions of countries, especially regarding renewable energies. The fact that the expected increase in the production of these panels was not seen in 2021 allowed these expectations to be postponed to 2022.

An increase in possible demand may also increase the demand for silver. Since the USA and China are the countries that consume the most in silver, a rapid recovery that may occur in the economies of these countries this year may also affect silver positively.

In addition, developments in global economies, possible new variants in the Covid-19 pandemic, inflationary concerns, supply shortages and rising energy prices are also expected to have an impact on silver prices.

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