Bas Kooijman
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 labor 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.
Investor positioning has also remained supportive. Global silver ETPs recorded 95 million ounces in inflows during H1, pushing total holdings to 1.13 billion ounces, just shy of record levels. While jewellery demand may face pressure due to high prices, institutional and industrial demand continue to anchor silver’s bullish outlook.
Kooijman is the CEO and Asset Manager of DHF Capital S.A
