Silver (XAG/USD) remains near its highest level since mid-October, supported by a combination of expectations for global interest rate cuts and a weakening US dollar. The prospect of lower interest rates makes non-yielding assets like silver and gold relatively more attractive than bonds. At the same time, concerns about the global economy and geopolitical uncertainty are driving some investors to seek "safe haven alternatives" to gold, and silver is also benefiting from these inflows.

Fundamentally, silver has a dual advantage: it is not only a precious metal that hedges against inflation and currency weakness, but also an industrial metal widely used in solar panels, electronics, and electric vehicles. Long-term demand from the green energy transition and this technology is a major story supporting silver's outlook, although short-term economic data sometimes triggers price fluctuations. As long as the "interest rates are likely to be lower going forward" narrative and industrial demand remains strong, silver is likely to remain a sought-after asset in investors' commodity portfolios.

On the other hand, inflows into silver-based investment products—such as ETFs and derivative instruments—are also supporting prices. As investors begin to diversify away from technology stocks and government bonds, some funds are shifting to precious metals, including silver, to balance portfolio risk. If this trend continues, silver's potential to maintain its gains remains quite strong, especially if subsequent economic data further reinforces the scenario of monetary policy easing in major economies. (az)

Source: Newsmaker.id