- Spot silver jumped nearly 3% to $60.37 per ounce, its highest intraday level in over a month.
- The rally was fueled by a weaker US dollar and renewed safe-haven demand amid geopolitical tensions.
- Analysts warn the move may be overstretched, with resistance at $61.00 likely to cap further gains.
Silver Shines Bright
Spot silver surged 2.8% to $60.37 per ounce in early trading on Thursday, breaking a weeks-long consolidation range. The precious metal benefited from a softening US dollar, which slipped 0.3% against a basket of major currencies, and a dip in Treasury yields as markets reassess the Federal Reserve's rate path.
“The move is largely technical, but the macro backdrop is supportive,” said a senior metals trader at a European bank, requesting anonymity because he wasn't authorized to speak publicly. “Silver is catching up to gold (GLD)’s recent rally.”
Gold also rose 0.8% to $2,710 per ounce, but silver’s outperformance stands out. Industrial demand, particularly from solar panel manufacturers, has provided a floor under prices, though inventory data from the London Bullion Market Association shows a slight uptick in vault stocks.
Drivers and Risks
The rally accelerated after a report from a commodities research firm noted that speculative long positions in silver futures had increased for the first time in three weeks. Meanwhile, physical demand in India, a key market, remains robust ahead of the wedding season.
“Investors are piling into silver as a hedge against both inflation and geopolitical uncertainty,” said an analyst at a New York-based hedge fund. “But with the RSI now above 70, a short-term pullback is likely.”
Without a sustained break above $61.00, silver could retest support at $58.50, according to technical charts. The US dollar’s trajectory and upcoming payroll data will be the next catalysts.
This article was updated at 10:30 a.m. EST to reflect the session high of $60.42.