Silver Approaches $49: Breakout?
Silver traded cautiously in the European session on Thursday, despite rising more than 1% to near $49 a troy ounce, as the market assessed two key directional factors: the direction of the US dollar and the Fed's interest rate outlook. The policy tone, which remains skewed toward "higher for longer," curbed buying appetite for the precious metal, as the opportunity cost of holding non-yielding assets increases. However, occasional dollar weakness provided breathing room for intraday bounces, especially when global risk appetite wavers and investors turn to metal-based safe havens.
From a fundamental standpoint, the industrial demand narrative remains a medium-term cushion for silver—particularly across the solar, electronics, and electric vehicle power chains. Sentiment toward China and Europe also plays a role: signs of stabilizing manufacturing activity or hints of additional stimulus typically support the white metal, while signals of weakening export demand can weigh. On the supply side, production news from major Latin American producers and the dynamics of international metals exchange stocks will continue to be monitored to gauge market tightness.
Looking ahead, market participants await further cues from comments by central bank officials, the direction of US bond yields, and the release of US services/employment activity data, which remains a key driver of interest rate expectations. As long as this uncertainty persists, silver is at risk of consolidating—with potential for strengthening if the dollar weakens and industrial growth headlines improve, and vulnerable to correction if the narrative of high interest rates and a strong dollar returns to dominance.
Source: Newsmaker.id
