• Spot silver extends gains, rising nearly 5% to $71.62 per ounce, signaling robust demand as a hedge against inflation and geopolitical tensions.
  • The rally aligns with shifting expectations for monetary policy and real yields, driving flows into precious metals.
  • Traders monitor ETF inflows and industrial usage, with higher prices potentially impacting near-term demand while benefiting miners.

Silver prices continued their upward trajectory on Thursday, with spot silver climbing nearly 5% to $71.62 per ounce, according to market data. The move underscores ongoing investor appetite for the metal as a safe-haven asset amid macroeconomic uncertainty and anticipation of central-bank policy shifts.

Market participants point to a confluence of factors fueling the rally. "Silver often moves in tandem with gold as a risk-off play, but recent volatility suggests it's also being driven by inflation expectations and currency dynamics," said one trader familiar with the matter, who requested anonymity due to company policy. Efforts to reach officials at major commodity exchanges for comment were not immediately successful.

Behind the surge, expectations for potential rate cuts or changes in real yields are influencing flows into non-yielding metals like silver. Federal Reserve communications and geopolitical risks, including tensions in key regions, have swayed investor sentiment, according to analysts. This aligns with recent patterns where silver has exhibited volatile cycles tied to shifts in gold prices and market liquidity.

For investors, the higher prices could benefit silver miners and exchange-traded funds focused on precious metals, though they may weigh on industrial demand if price inflation slows. Traders are closely watching ETF inflows, mine supply dynamics, and trends in jewelry and industrial usage, which could signal whether the rally has staying power. "We're seeing increased interest in silver as a hedge, but it's crucial to monitor official economic releases and central-bank signals for direction," noted a fund manager specializing in commodities.

Risks remain, with key uncertainties including abrupt policy shifts—such as monetary tightening versus easing—and geopolitical events that could cap or extend the move. Historically, silver has surged during periods of dollar weakness and heightened inflation fears, a pattern that appears to be playing out again. The near-term trajectory will likely hinge on macro cues and continued investor interest in precious metals as protective assets.

In a brief update, earlier reports had silver at $71.50 per ounce; the figure was revised to $71.62 based on the latest data.