Bas Kooijman
Silver traded within a narrow range on Tuesday, near its highest level since 2011, as markets continued to price in Federal Reserve rate cuts and industrial demand remained robust. Today’s benchmark revision to US labor market data is expected to show a significant downward adjustment, reinforcing the narrative that the Fed may be lagging its full-employment mandate.
Attention turns also to the August PPI and CPI figures scheduled for release midweek to better assess the Fed’s next moves. Traders see an 88% chance of a 25 bps cut next week. This dovish outlook paints a bullish scenario for silver.
On the industrial side, tight physical market conditions continue to support the metal. China’s solar cell exports jumped more than 70% in H1 2025, led by strong shipments to India. Coupled with growing demand from EVs and electronics, this has deepened structural deficits.
At the same time, investment flows remain favorable with Silver-backed ETP holdings standing at 1.13 billion ounces by the end of June.
Kooijman is the CEO and Asset Manager of DHF Capital S.A
