Silver price will likely remain on the bullish trend observed in the last quarter of 2022 as investors expect improved demand in 2023. Even so, it may experience a bump in the form of an increase of COVID-19 cases in China. However, in the immediate term, the end of year festivities will likely spark low volatility.
2022 silver market outlook
2022 was quite an eventful year for investors in the silver market and the broader commodities sector. To begin with, in early March, Russia’s invasion on Ukraine boosted silver price to its highest level in close to a year at $26.94.
However, as the safe-haven demand for the US dollar heightened, the metal had its price drop to a 14-month low of $17.59 in late August. In addition to the geopolitical tensions, a hawkish Fed also boosted the greenback while exerting pressure on the dollar-priced commodities. Notably, the stringent COVID-19 restrictions in China – the leading consumer of industrial metals – also contributed to the plunge.
2023 silver price forecast
Fast forward to the last quarter of 2022 and silver price has largely been boosted by hopes over the reopening of China. In fact, this is set to be one of the bullish drivers of silver price in 2023. The expected easing of COVID-19 restrictions in the Asian country is set to improve silver demand for industrial uses.
Even so, this may not be immediate as the 16-day long Chinese New Year holiday is set to begin in mid-January. Besides, thee may be a surge in COVID-19 cases in the nation amid increased mobility.
Additionally, recession concerns may boost silver price in 2023. This forecast is founded on the metal’s status as a safe haven in times of economic turmoil.
Silver price prediction
Silver price pulled back further on Thursday after retesting the crucial zone of 24.00 earlier in the week. Even so, it remains above the 25 and 50-day exponential moving averages.
Based on both the fundamentals and technicals, I remain cautiously bullish in silver price. Granted, there will likely be low volatility in the ensuing sessions as investors shift their focus to the end of year festivities. As such, the metal may continue hovering around the psychological zone of 24.00 in the short term.
On a broader scale, the range between 23.34 and 24.56 will be worth watching. However, this bullish thesis will be invalidated by a move below the 25-day EMA at 22.67.