Silver Regains Gas, Breaks $107! OTW $108?
Silver prices surged more than 4% to above $107 per ounce on Monday, continuing their rally to hit an all-time high. This increase was driven by a combination of safe-haven demand, investment interest, and still-tight physical supply.
The market views this rally as more than just a momentary euphoria. The scarcity of supply in the physical market makes prices more sensitive, so any surge in demand could trigger a larger spike.
The price increase has also triggered a wave of retail buying in major economies like China and India. Investors are increasingly seeking silver in the form of 1-kilogram bars, as they are considered a more "serious" investment than jewelry.
In China, high demand is said to have shifted production. Several manufacturers are reportedly shifting their focus from silver jewelry to investment products to catch up with the surge in demand for bars.
From a macro perspective, geopolitical uncertainty and the risk of a trade war are adding fuel to the rally. One trigger was US President Donald Trump's threat of 100% tariffs on Canada if it finalizes a trade deal with China—which made the market increasingly cautious and shifted toward safe-haven assets.
Furthermore, speculation that Trump could replace Fed Chairman Jerome Powell with a more dovish candidate also strengthened expectations of future interest rate cuts. Potential interest rate cuts are usually a welcome boost for precious metals, driving a stronger flow of safe-haven assets to silver and gold. (asd)
Source: Newsmaker.id
