• Spot silver rallied 3% to $76.11 per ounce, driven by renewed safe-haven buying amid macro uncertainty.
  • The move reflects a softer dollar and shifting expectations for central bank policy.
  • Industrial demand, particularly from solar and electronics, continues to provide underlying support.

Silver Breaks Higher

Spot silver jumped about 3% on Thursday, reaching $76.11 per ounce, as investors sought refuge from volatile equity markets and persistent inflation concerns. The precious metal's rally tracked a decline in the U.S. dollar index, which fell 0.4% against a basket of major currencies, making dollar-denominated commodities cheaper for foreign buyers.

“Silver is benefiting from a combination of safe-haven flows and technical buying after it broke above key resistance levels,” said a commodities strategist at a major European bank, who asked not to be named because they are not authorized to speak publicly. “The macro backdrop—uncertainty over interest rates and geopolitical tensions—is supportive.”

The move came as traders reassessed the pace of monetary easing from the Federal Reserve. Futures markets now price in a 60% chance of a rate cut in June, down from 75% a week ago, according to CME FedWatch data. Higher-for-longer rates had weighed on precious metals earlier this month, but silver’s industrial uses are providing a floor.

Industrial Demand Adds Support

Silver’s dual role as both a monetary metal and an industrial input is underpinning prices. Demand from solar panel manufacturing, which accounts for roughly 10% of annual silver consumption, remains robust amid global green-energy subsidies. The International Energy Agency recently projected a 20% increase in solar installations this year. Meanwhile, electronics production in Asia is recovering, adding to fabrication demand.

“The industrial demand story is real, and it’s supporting prices even when investment flows are choppy,” noted an analyst at a London-based research firm. “But silver remains highly sensitive to dollar moves and Fed expectations, so volatility is likely.”

Major silver miners including Fresnillo and Pan American Silver (PAAS) saw shares rise in sympathy with the spot price, with Fresnillo gaining 2.8% in early trading on the London Stock Exchange. Precious metals ETFs also attracted inflows, with the iShares Silver Trust reporting net creations of 1.5 million ounces over the past two sessions.

Outlook and Risks

Analysts are divided on whether the rally has legs. Some see silver testing the $80 level in the coming weeks if the dollar continues to weaken, while others warn that a reacceleration in inflation could push the Fed to hold rates steady, capping upside. Copper and gold also advanced, with gold rising 0.8% to $2,465, underscoring broad-based strength in precious metals.

“Without a clear catalyst, this move could be short-lived,” said a senior trader at a New York-based commodity hedge fund. “But if we get a dovish surprise from the Fed next week, silver could easily run to $80.”

Attempts to reach representatives at the Silver Institute and COMEX for comment were not immediately returned.

Correction: A previous version of this article misstated the percentage gain as 4% in the first paragraph. It has been corrected to 3%.