Market Sentiment Heats Up, Silver Resilient to Shocks
Silver prices remained strong in the European session on Friday, hovering around $52-53 per troy ounce. Spot data showed silver rising nearly 1% to around $52.7-53 after a sharp rally in recent weeks, and is now just slightly below the historical high of $53.55 reached in mid-October. Within a week, silver had risen several dollars from the $48 area, indicating continued strong investor buying interest.
Fundamentally, the silver rally remains supported by a combination of two main factors: safe-haven sentiment and the supply deficit story. Concerns over the US economic outlook following the government shutdown, unclear inflation and employment data, and the possibility of a change in Fed policy have led investors to continue looking to the precious metal as a hedge. At the same time, reports from major institutions and banks indicate that the silver market has been in a structural deficit for several years in a row, with industrial demand from solar panels, electric vehicles, and electronics continuing to grow faster than mining production growth.
However, the already very high price levels also make the market more sensitive to corrections. After rallying more than 70% year-to-date and briefly setting a new record, some market participants are starting to be wary of potential short-term profit-taking if the US dollar strengthens again or expectations of a Fed rate cut are pushed back. For now, as long as silver can hold above the $52 area, a key support zone, the medium-term uptrend is considered intact, although volatility is expected to remain high.
Source: Newsmaker.id
