• Spot silver jumped more than 3% to $61.63 per ounce, breaking above key resistance levels.
  • The rally reflects heightened safe-haven buying amid inflation concerns and a weaker US dollar.
  • Analysts eye further upside if macroeconomic headwinds persist, though profit-taking risks remain.

Silver Spikes Amid Macro Uncertainty

Spot silver prices climbed sharply on Thursday, rising over 3% to $61.63 per ounce, according to market data. The move marks a notable bounce from recent lows and aligns with a broader uptick in precious metals as investors reassess global economic risks.

Traders cited a combination of factors driving the surge, including a softening US dollar and renewed inflation expectations following mixed economic data. Silver, often seen as both a monetary metal and an industrial commodity, has benefited from dual demand: safe-haven flows and optimism about industrial usage in sectors like solar energy and electronics.

“The break above $60 was a technical trigger,” said a metals strategist at a European bank. “Volume picked up significantly as stop-losses were triggered, and we’re seeing follow-through buying from macro funds.”

Industrial and Monetary Drivers Converge

The latest move comes after a period of consolidation, with silver under pressure from rising real yields earlier this month. However, a shift in tone from central banks and softer economic data have reignited interest. The US dollar index dropped 0.4% in morning trading, providing a tailwind for dollar-denominated commodities.

Meanwhile, industrial demand signals remain mixed but supportive. Global manufacturing PMIs in China and the Eurozone showed slight improvements, bolstering expectations for silver’s industrial offtake. “Silver’s dual nature is in play today,” said a portfolio manager focused on commodities. “You have inflation hedging and industrial recovery narratives converging.”

Implications for Markets

The rally has lifted mining equities and silver-focused exchange-traded funds, with several producers seeing gains of 4-6% in early trading. Analysts caution, however, that the move may be overextended in the short term. Open interest in silver futures rose only modestly, suggesting the move was driven more by short covering than fresh long positions.

“We’d need to see sustained inflows into ETFs for this to be a durable trend,” noted the metals strategist. “Without a catalyst like a clear dovish pivot from the Fed, a pullback toward $59 is possible.”

Attempts to reach representatives from the Silver Institute for comment were not immediately successful.

Correction: A previous version of this article misstated the percentage gain as 4%; it has been corrected to over 3%.