Silver extends gains amid strong yearly rally
Silver prices (XAG/USD) rose slightly on Thursday, according to FXStreet data. The metal is trading at $53.41 per troy ounce, up 0.12% from Wednesday’s level of $53.35. This marks a continuation of silver’s bullish momentum, which has seen prices surge 84.86% since the beginning of the year.
Silver’s strong annual performance has positioned it as one of the standout assets in the precious metals space, attracting increased attention from investors seeking inflation hedges and portfolio diversification.
The Gold/Silver ratio, which reflects how many ounces of silver are needed to equal the value of one ounce of gold, dropped to 77.77 on Thursday, down from 78.06 the previous day. This decline suggests silver is outperforming gold in relative terms, a trend often associated with increased industrial demand or speculative interest in silver.
While silver’s gains are largely driven by technical momentum and industrial demand, broader market sentiment remains influenced by expectations of monetary easing in the United States. Speculation continues around potential rate cuts by the Federal Reserve, especially as inflation moderates and economic data shows mixed signals.
The President of the United States has reiterated the administration’s commitment to supporting industrial growth and clean energy initiatives, which could further boost silver demand in sectors like solar technology and electronics.
Summary:Silver continues its upward trajectory with modest daily gains and a remarkable 84.86% year-to-date increase. The falling Gold/Silver ratio and supportive policy signals from the United States suggest silver may remain a favored asset in the near term.