Silver Breaks Record, Correction or Continue to Accelerate
Silver hit an all-time high (ATH) today as investor interest in the precious metal increased after the Fed's interest rate policy shifted toward a more lenient stance. The interest rate cut made the yields of interest-bearing assets like bonds less attractive, prompting some funds to shift to non-yielding assets like silver. Furthermore, the earlier rally in gold also "pulled" silver upwards, as many market participants viewed silver as a cheaper alternative with the potential for aggressive upside when risk-off sentiment and the theme of monetary easing intensified.
From a fundamental perspective, silver is not only viewed as a safe haven asset but also has strong industrial functions. Demand for silver in solar panels, electric vehicles, electronics, and green technology continues to rise. When global growth expectations improved after interest rates began to fall, the market immediately read the potential for increased industrial demand in the future. This combination of the "safe haven metal + industrial commodity" narrative made silver appear more attractive than many other commodities, increasing buying pressure and pushing prices above their ATH.
However, behind this sharp rally, the market is also aware that the risk of a correction always lurks. Price increases that are too rapid could trigger profit-taking, especially if economic data is not as strong as expected or the Fed signals a longer easing pause. For now, as long as expectations of further interest rate cuts, the US dollar tends to weaken, and sentiment toward precious metals remains positive, fundamentals still favor silver. Traders will typically monitor inflation data, global growth, and central bank comments to determine whether silver's rally to its all-time high can continue or is poised to enter a consolidation phase. (az)
Source: Newsmaker.id
