Silver Soars Nearly 4%, Breaking Through $80.5 per Ounce
Silver prices surged nearly 4% to return to trading above $80.5 per ounce, extending a rebound after a volatile period in recent sessions. This increase indicates a return to strong buying interest, especially at a time when the market is sensitive to geopolitical headlines and US data.
The main driver comes from rising geopolitical risks, particularly the escalating tensions between Washington and Tehran. After US President Donald Trump set a nuclear deadline, Iran responded with a warning of retaliation in the event of an attack. This situation has revived the risk premium, and silver—known for its greater volatility—tends to amplify the market's reaction.
At the same time, the market is also weighing the increasingly unclear direction of the Fed's policy. US Q4 GDP data of just 1.4% signals slowing growth, but a stronger Core PCE (around 3.0%) indicates that inflation remains sticky. This mix makes it difficult for the market to determine whether the Fed will ease quickly or remain tight for longer.
The Fed's own tone has added to the confusion. The FOMC meeting minutes showed rifts, while jobless claims data remained at 206,000—signaling a relatively solid labor market. This combination of weakening growth and stubborn inflation complicates real yield projections, which typically impacts precious metals directly.
From a micro-market perspective, liquidity in Asia was thin due to the Lunar New Year holiday, particularly following the blow-off and speculative unwinding in Chinese futures contracts. However, as markets began to reopen, recovered participation added momentum to silver.
Going forward, silver is considered to be entering a more stable phase, balancing two major roles simultaneously: as a safe haven asset during geopolitical tensions, and as a crucial industrial metal when the manufacturing/technology demand narrative remains relevant.
Source: Newsmaker.id
