Silver Prices Surge; Domino Effect of Gold Rally Begins to Take Hold

Silver prices strengthened again during Friday's trading as investor interest in precious metals rose amidst a weakening US dollar and growing expectations of looser financial conditions. Silver (XAG/USD) rose 2.67% to around US$69.94 per troy ounce, up from its previous level of US$68.12.

Silver's gains mirror the positive trend seen in the precious metals market, particularly with gold. A weaker US dollar, combined with the US Treasury Department's move to increase its long-term Treasury bond buyback program, has pushed yields lower, thereby boosting the appeal of non-yielding assets like silver.

Beyond its role as a hedge, silver is also supported by industrial demand. The metal is widely used in the technology, renewable energy, and manufacturing sectors; consequently, growth prospects for technology investments are also bolstering prices.

Despite strong short-term gains, silver has remained under pressure year-to-date, posting a decline of approximately 1.61% since the beginning of the year. Investors continue to monitor the Federal Reserve's policy direction, US dollar movements, and bond market developments as key factors going forward.

Newsmaker Analysis: Silver is gaining positive momentum driven by rising demand for hedging assets and pressure on the US dollar. If sentiment toward precious metals remains strong and Treasury yields decline further, silver could extend its rally toward the next psychological level. However, volatility remains high as the market awaits signals regarding the Fed's interest rate policy. (arl)

Source: Newsmaker.id