Silver Hits $54 - Another Break or a Break?
Silver prices moved steadily in the European session on Friday (10/17), holding near record levels, hovering around $54.0/oz after briefly touching a historic peak this week. A strong "safety" trend remains amid concerns about US regional bank credit, US-China trade tensions, and macroeconomic uncertainty, maintaining buying interest in precious metals. Gold also rallied above $4,300/oz, and silver reached the $54+ level as a result of similar sentiment.
On the policy front, bets of two more Fed rate cuts this year weakened the dollar and supported non-yielding assets like silver. The high probability of a cut and market concerns about credit health pushed XAG/USD to remain near its peak. Intraday, silver briefly corrected to the $53.4 area due to profit-taking, but this was quickly recovered by hedging demand.
Looking ahead, volatility is expected to remain high. Analysts believe the bias remains positive, but "sharp fluctuations" may continue as positions and physical flows between trading centers adjust. In India, the MCX contract even reached 1.70 lakh/kg amid the festival season—reflecting strong retail demand—although tightness in the London market is expected to ease as supply flows in from New York. The next focus: US/China data and the Fed's latest signal to test whether silver can break through $54.5 or return to consolidation.
Source: Newsmaker.id
