Why Has Silver Suddenly Become the Market's Prima Donna?
Silver is currently trading near multi-year highs, buoyed by the gold rally and a cautious mood in global markets. Fundamentally, silver benefits from two factors: its safe-haven status when investors are concerned about interest rates, inflation, and geopolitical risks, plus its role as an industrial metal for solar panels, electronics, and electric vehicles. Therefore, when global tensions or economic concerns arise, demand for silver as a hedge increases; while the long-term trend of green energy and technology keeps industrial demand for silver strong.
On the central bank and monetary policy front, expectations that the Fed is nearing the end of its interest rate hike cycle—and possibly heading towards a rate cut phase next year—are also supporting silver. Lower interest rates tend to put downward pressure on the US dollar and bond yields, making non-yielding precious metals like silver and gold more attractive. As long as inflation remains above target and economic uncertainty persists, silver has the potential to remain sought after as a combination of a safe haven asset and a “metal of the future” for the energy transition. (az)
Source: Newsmaker.id
