Silver at Highs, China Heating Up Markets
Silver prices held around $115 per ounce on Wednesday (January 28th), remaining near their latest peak. The main driving force came from a combination of demand for safe-haven assets and a sharply weaker US dollar, coupled with continued strong physical buying from the retail market.
President Donald Trump's comments, seemingly downplaying the weakening dollar—which reached a four-year low—contributed to the perception that the government was not overly concerned about a weaker currency. At the same time, the market remained clouded by the threat of new tariffs and tensions over the Fed's independence, keeping interest in precious metals strong.
From a policy perspective, the Fed's decision to hold interest rates at 3.50%–3.75% did not signal a firm direction but instead reinforced the climate of policy uncertainty. Such conditions typically support non-yielding assets, including precious metals.
What makes silver stand out from other metals is the increasingly tight market signals, particularly in China. Several pure silver funds briefly suspended trading after surging demand pushed price premiums well above net asset value (NAV). On the supply side, manufacturers have also begun shifting output from jewelry to 1-kilogram investment bars, which has limited supply and helped keep prices high.
Source: Newsmaker.id
