Silver Slightly Dips Below $39.40 After 36% Year-to-date Surge
Silver prices fell again from a nearly 14-year peak on Thursday, trading below $39.40 per troy ounce. While still near its highest level since September 2011, this represents a natural correction after the ongoing rally. Strengthening bond yields and the US dollar have somewhat curbed the upward trend, but the white metal has still posted a year-to-date surge of more than 36%—leading gold's rise of around 31%.
The primary reason for the silver price surge is the ongoing supply tightness. The supply surplus has narrowed for five consecutive years, creating a structural deficit in the market. Furthermore, rising industrial demand—particularly for applications in the electronics, solar cells, and electric vehicles sectors—is further correcting the fundamentals of supply and demand. Investors are also increasingly viewing silver as a more affordable safe-haven alternative to gold amid uncertainty over US tariff policy.
Despite pressure from strong US economic data, such as jobless claims and the Flash Manufacturing PMI—which have slightly dampened silver's momentum—the outlook remains optimistic. Analysts project a potential increase to US$42–45 per ounce by the end of this year, although a temporary correction to $35 is likely as the market corrects its position. Solid fundamentals and supply shortages underpin expectations that the medium-term bullish trend will persist.
Source: Newsmaker.id
