Silver Rally Continues Amid US–China Tensions and Supply Concerns
Silver prices recorded a significant surge in trading on Monday, reaching around US$51.70 per ounce, up approximately 2.90% compared to last Friday's closing position of US$50.05. This surge made silver one of the strongest performers among precious metals this year, raising concerns that the market is entering an intense bullish phase.
The main fundamental driver came from the re-escalating US–China trade tensions, which triggered a "capital flight" to safe-haven assets like precious metals. Meanwhile, the physical market is showing significant supply pressure, particularly in the London trading center, leading to the so-called "state of seizure" in the silver market due to difficulties in obtaining physical metal. Demand from industrial sectors—such as electronics, solar panels, and clean technology—also reinforces expectations that the silver rally is not merely speculative but is supported by real demand.
Despite the strong optimism, analysts warn that future volatility could be sharp. Goldman Sachs, for example, warns that while silver has upside potential, it is more susceptible to fluctuations than gold due to its weaker institutional demand base. Pressure from US interest rates, the strength of the US dollar, and the possibility of a technical correction are also factors worth watching for as triggers for sudden weakness.
Source: Newsmaker.id
