Silver Holds Strong Momentum
Silver prices were at $37.7 per ounce on Tuesday, extending the strong momentum since the start of the year amid signs of robust industrial demand and the outlook of rate cuts by the Federal Reserve.
China installed over 93 gigawatts capacity of solar panels in May, a 300% surge annually to a fresh record high before a new set of policy changes would make it more difficult to attach panels to grids.
Additionally, the State Grid Corporation of China stated it would exceed $90 billion in grid investments this year to prevent curtailment of solar power, set to ease concerns of future demand for photovoltaic panels, which are silver's main industrial use. In the meantime, the lack of aggressive upsides in the latest CPI report drove markets to pile on bets of a rate cut by the Fed in September. This combined with the impact of pessimistic ISM PMI results and the downward revision in non-farm payrolls, supporting bullion assets without yield.
Source: Newsmaker.id