Silver Rises Toward 3-Month High
Silver erased its earlier pullback to trade above the $32 per ounce mark, near a three-month high, outperforming other bullion in the session as expectations of steady demand for the metal in the electrification industry offset bets of a more hawkish Fed this year.
The unexpected rebound in the ISM manufacturing PMI for January improved the outlook for US manufacturing following more than two years of monthly contractions.
Additionally, new data showed that China put up 357 gigawatts of solar and wind power in 2024, among the main uses of industrial silver. Also on the solar power front, India’s Oil and Natural Gas Corp pledged to invest INR 1 trillion in wind and solar by the end of the decade, while Indonesia pledged to add 17 gigawatts of solar energy through state-owned enterprises.
On the policy front, hot inflation data in the US cut expectations of lower borrowing costs by the Fed, raising the opportunity cost of holding precious metals.
Source : Trading Economics
