The silver market remains firmly focused on the fundamentals that support today's high prices. Despite some corrections in recent days, the underlying structure of the silver market remains tight due to limited supply and continued rising demand from the industrial and investment sectors. Global physical silver stocks are expected to dwindle as new production is unable to grow rapidly, while demand from various industries remains strong.

One of the main reasons for silver's price movements is massive industrial demand. Silver is essential for the manufacture of solar panels, electric vehicles, electronics, and other high-tech industries. Demand from the renewable energy and technology sectors is growing rapidly, resulting in increasingly tight silver supplies.

Furthermore, expectations about US monetary policy also influence silver prices. If the market believes the Federal Reserve will lower interest rates further this year, precious metals like silver become more attractive as non-interest-bearing investments. This expectation of lower interest rates could encourage more investors to enter the silver market.

On the other hand, geopolitical uncertainty and silver's role as a safe haven asset remain supporting factors for prices. During times of global tension or economic uncertainty, investors often turn to precious metals like silver to protect their wealth. A combination of tight supply, strong industrial demand, and positive investment sentiment keeps silver's fundamentals strong despite high volatility. (az)

Source: Newsmaker.id