A Record in Sight: Silver Poised to Break Through?
Silver rose above $52/oz on Wednesday, tying the previous session's record. The global supply crunch—most severe in London—triggered a short squeeze that briefly lifted lease rates above 30% on Friday, making rollovers of short positions increasingly expensive. Indian demand added pressure; some fund managers limited/suspended inflows into silver ETFs to mitigate liquidity risk.
Jerome Powell's dovish tone (weakening employment figures) strengthened bets on a US rate cut, depressing yields and boosting appetite for safe-haven metals. On the geopolitical front, tensions escalated after Donald Trump threatened a "cooking oil" embargo on Beijing—a headline risk that kept safe-haven bids alive.
As long as physical liquidity remains restrained and expectations of interest rate cuts persist, the bias for silver remains bullish, despite volatility. Watch: normalization of the London-NY spot-futures spread, updates on physical demand in India, and the Fed's next signal.
Source: Newsmaker.id