"Silver traded recorded some volatility on Tuesday, hovering near its highest level since 2011, as investors weighed macroeconomic signals and industrial momentum. Markets continued to price in a near 90% probability of a 25 bps Federal Reserve rate cut later this month, following dovish remarks from San Francisco Fed President Mary Daly, who warned of labour market fragilities and described tariff-driven inflation as likely transitory. Ongoing concerns over the Fed's independence and broader uncertainty around US trade policy kept safe-haven demand elevated."
"On the industrial side, silver found renewed support from the solar energy sector. China's solar cell exports surged over 70% in the first half of 2025. Separately, Malaysia approved nearly 2,000 MW in new solar capacity, including one of its largest floating projects to date. These developments highlight silver's strategic role in photovoltaic infrastructure, painting a bullish scenario for the commodity."
Silver traded with volatility near its highest level since 2011 as investors weighed macroeconomic signals and industrial momentum. Markets priced a near 90% probability of a 25 bps Federal Reserve rate cut later this month after dovish remarks from Mary Daly, who warned of labour market fragilities and called tariff-driven inflation likely transitory. Concerns over Fed independence and US trade policy kept safe-haven demand elevated. Industrial demand strengthened from solar energy, with China's solar cell exports surging over 70% in H1 2025 and Malaysia approving nearly 2,000 MW of new solar capacity, including a major floating project. Global silver ETPs recorded 95 million ounces of inflows in H1, lifting holdings to 1.13 billion ounces; jewellery demand may be pressured by high prices, but institutional and industrial demand underpin a bullish outlook.
Read at London Business News | Londonlovesbusiness.com
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