Silver Near Peak, Market Eyes Safe Haven
Silver prices strengthened on Monday, as the market digested policy signals and trade tensions. After Friday's sharp correction, buying interest resurfaced amid expectations of a Fed interest rate cut and focus on renewed US-China dialogue. Spot silver held above $52 per troy ounce, still near its all-time high of over $54 per ounce reached last week. Silver also rebounded alongside gold today.
From a fundamental perspective, the influx of bullion shipments to London eased the liquidity squeeze that had pushed up the spot price premium over Comex contracts. The influx of supply from the US and China lowered borrowing costs and balanced physical availability in the OTC market. However, declining exchange inventories and seasonal demand from India remain supportive, so falling prices are likely to be quickly exploited by institutional and retail market players for accumulation.
Looking ahead, the Fed's path, the direction of the dollar, and headlines from trade talks will be key catalysts. If the prospect of easing persists while the dollar does not strengthen sharply, the combination of hedging demand and industrial demand—particularly electronics and solar energy—has the potential to keep prices within a high range. However, if supply becomes more lax and global sentiment improves, volatility could increase, with a consolidation scenario in the USD 50-54 range until the release of inflation data and the next policy decision.
Source: Newsmaker.id
