Bas Kooijman
Silver hit fresh record highs on Tuesday, as safe-haven demand and bullish industrial fundamentals continued to support prices. The rally follows last week’s 25 bps Federal Reserve rate cut, its first of the year, which prompted markets to fully price in nearly two more reductions by year-end. However, yesterday several Fed officials adopted a cautious tone, warning of persistent inflation and narrowing room for further easing, which could limit silver’s bullish run.
Investors now await Jerome Powell’s remarks and Friday’s core PCE reading, the Fed’s preferred inflation gauge, for clearer guidance on the monetary path. Any dovish tilt could extend silver’s upside momentum.
Industrial demand continues to anchor the rally. Strong consumption across solar, EV, and electronics sectors is tightening the physical market, while exchange-traded product (ETP) inflows surged to 95 million ounces in H1, above last year’s total. Global investments rose, reflecting growing confidence in silver as a macro and industrial play, painting a bullish long-term scenario for the commodity. Additionally, the global silver deficit is expected to remain but become narrower in 2025.
Kooijman is the CEO and Asset Manager of DHF Capital S.A
