Silver Soars to $72.90, Biggest Surge Since 1979!
Silver (XAG/USD) attracted strong buying interest, breaking through $72.90 in Asian trading on Friday. The white metal posted a gain of more than 140% through 2025, marking its sharpest surge since 1979. This increase was driven by expectations of a US Federal Reserve interest rate cut and investor demand for safe-haven assets amid geopolitical uncertainty.
Expectations of a US interest rate cut have put pressure on the US dollar, making USD-priced metals like silver more attractive. The market currently expects two quarter-point Fed rate cuts through 2026. Lower interest rates reduce the opportunity cost of holding silver, making it a popular choice for investors.
In addition, demand for silver is also supported by buying by central banks and investors seeking protection from global tensions and economic risks. "Gold and silver prices have seen significant increases due to the interaction of several economic, investment, and geopolitical factors," said Rania Gule of the XS.com trading platform.
However, silver's short-term upside potential could be limited. Investors are taking profits and rebalancing their portfolios, while the CME Group is raising margins for precious metals contracts, including silver. This means traders must increase their funds to maintain their positions, indicating that silver price volatility could remain high for some time to come. (az)
Source: Newsmaker.id
