Silver Prices Enter Correction Territory – What’s Next?Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions.
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Palladium’s explosive rally also pulled up Copper, which is now trading at a decade high. Copper prices have more than doubled since March last year. Meanwhile, Silver prices have traded in and around the $26 an ounce level.
There are plenty of fundamental factors why metals are on the move, but the key driver is a vaccine-led recovery fuelled by massive amounts of global stimulus into Green Energy and Infrastructure projects. This is against a backdrop of tightening supply across many high-in-demand commodities, which indicates that we now at the dawn of a new supercycle.
Earlier this month, President Biden revealed his ‘Build Back Better’ Plan to transform the U.S. economy.
President Biden’s ambitious $2.3 trillion proposals will involve pumping hundreds of billions of dollars into improving the nation’s aging roads, bridges, schools, railways, waterways, airports and cellular network. This ultimately means that the U.S is going to need more commodities – and lots of them.
However, supply is limited – which is yet another indication that we could be on verge of a new supercycle in commodities as demand outstrips supply over the next few years. Therefore, any near-term pullbacks should be considered as a buying opportunities.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
For a look at all of today’s economic events, check out our economic calendar.