The Fed Just Raised Interest Rates for the First Time Since 2023. Here's What That Could Mean for the Price of Silver
Silver has been trading sideways in recent months, but it may not be too long before there's a catalyst that sends it soaring.
Overview
Last week, the Federal Reserve did something many analysts and investors were anticipating: an interest rate hike. It was the first one since 2023, except back then, it was the end of a tightening cycle, whereas today, there are still concerns of more rate hikes in the future, depending on what happens with inflation. Fed Chair Kevin Warsh has been clear: the goal remains to get to 2%.
Silver is a precious metal that investors have loaded up on in the past, typically when they want to diversify and are in search of ways to reduce exposure to equities. Late last year, amid turmoil between the Fed and the U.S. president and concerns about rising stock valuations, silver surged in value. Ultimately, it would reach all-time highs in January. While silver is down significantly since then, the iShares Silver Trust (NYSEMKT:SLV), which tracks silver, has risen more than 50% over the past 12 months.
Details
The big question investors may be wondering right now is whether silver could be due for another rally, now that interest rates have risen and may be rising further. Here's what I think may happen.
Source
Originally published at www.fool.com.