Silver Corrects, Investors Take Profits After Hitting a 14-Year Peak
Silver prices fell on Tuesday, as investors took profits, trading around $46 per troy ounce after hitting a 14-year peak of $47.2 in the previous session. Market sentiment was driven by a combination of safe-haven demand due to the increasing risk of a US government shutdown and the prospect of a continued global supply deficit in 2025. According to projections by The Silver Institute, global silver production this year is expected to reach only 844 million ounces, about 100 million ounces below estimated demand.
Fundamentally, rising industrial demand is supporting silver prices. The adoption of renewable energy, particularly solar panels, is driving silver demand in the manufacturing sector. Recent data shows that China's solar cell exports surged 40% during the third quarter, reflecting a strong trend toward a global energy transition. Silver is also supported by its use in the rapidly expanding electronics and data center industries.
On the macroeconomic front, a weaker US dollar following the release of consumer confidence data and a decline in job openings have also provided room for the precious metal's rally. Investors are also keeping an eye on political uncertainty in Washington, where the stalemate between Democrats and Republicans could delay the release of key employment data this week. With the combination of risk factors and a strong demand outlook, silver is seen as still having room to continue its medium-term bullish trend.
Source: Newsmaker.id
