Silver Prices Surge Over 5% as Precious Metals Rally Gains Momentum

Silver Prices Surge Over 5% as Precious Metals Rally Gains Momentum

The price of Silver (XAG/USD) has jumped significantly since Friday, climbing more than 5% to over $39 per troy ounce, making it the top performer among major precious metals.

Silver Outpaces Gold Amid Rising Market Uncertainty

In contrast to Gold’s 1.5% increase, Silver outshined its traditional safe-haven counterpart. However, market analysts suggest this rally may be misguided or speculative, especially since the spike is not backed by fundamental industrial demand.

“There is no intrinsic reason for this rally,” one analyst noted, linking the gains to heightened uncertainty caused by US President Donald Trump’s new tariff threats, which pushed investors toward safe-haven assets like the Japanese Yen, Swiss Franc, and precious metals.

Silver's Dual Role: Industrial Metal and Safe-Haven

While Gold is primarily a safe-haven, Silver has a dual nature:

• It benefits from investor risk aversion,
• But relies heavily on industrial demand, which declines in economic slowdowns.

This makes Silver’s strong performance somewhat puzzling, especially amid fears of slowing global growth.

“That Silver outperformed Gold is likely a lagging effect following Platinum’s rally rather than a structural shift in demand,” a strategist explained.

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• Platinum's Early Rally: What It Signals for Metals Markets