Silver Corrects Slightly, Rally Still "Alive"
Silver prices (XAG/USD) weakened slightly in the Asian session on Thursday (October 9th), hovering within a high range after hitting a new record near $49.6 per ounce the previous day. The main drivers came from gold's rally to reach $4,000, demand for hedge funds, and speculation of interest rate cuts, which has boosted appetite for the precious metal.
Fundamentally, the silver market remains in a supply deficit that is expected to persist through 2025. At the same time, industrial demand remains strong—particularly from solar panels (PV), electric vehicles, and electronics—despite thrifting in the PV sector, which is depressing the share of silver per unit. This means that silver consumption per panel may be declining, but growing installation volumes maintain substantial overall demand.
From an investment perspective, interest in precious metal instruments has again increased. Tight liquidity in global trading centers and increased shipment activity to futures warehouses are helping to boost prices. The gold-silver ratio has also narrowed sharply this year, indicating silver's increasingly solid relative performance compared to gold.
Looking ahead, volatility is potentially high following the rapid turnaround. Market participants are closely monitoring the direction of the US dollar and real yields, the pace of global PV installations, and geopolitical developments impacting risk appetite. Baseline scenario: the rally remains subdued but moves more precisely, with the potential for consolidation at a higher range amid tight supply and resilient industrial demand.
Key points:
Silver corrected slightly after setting a new record; the rally is not yet broken.
Sustainable supply deficit in 2025, industrial demand (PV/EV/electronics) remains strong.
Investment flows strengthen; the gold-silver ratio narrows.
The outlook is positive but volatile; focus is on the US dollar, real yields, and the pace of PV installations.
Source: Newsmaker.id
