Silver is on the move, leading the charge for precious metals as it hits an 11-year high and surpasses $31 an ounce. The white metal’s surge is being closely watched by analysts, as it has lagged behind gold’s breakout rally earlier this year. With a more than 10% gain for the week, silver is proving to be a strong contender in the precious metals market. Gold, on the other hand, is also experiencing a push above initial resistance, with prices nearing record highs.
Experts like Ole Hansen, Head of Commodity Strategy at Saxo Bank, note the broad-based gains in the precious metals complex, with platinum also hitting a one-year high. This positive momentum is being driven by bullish sentiment in the marketplace and the significant drop in the gold-silver ratio.
Fawad Razaqzada, Market Analyst with the StoneX Group, sees this breakout move for silver as just the beginning of a new rally. He believes that the pent-up sentiment in the silver markets, coupled with its dual role as a monetary and industrial metal, is fueling this surge.
While silver may be in the spotlight now, some analysts caution that gold remains the star of the show, especially as geopolitical uncertainty and central bank demand continue to support prices. With a quiet week ahead, potential profit-taking could occur, but all eyes will be on the upcoming Federal Reserve speakers and economic reports for further market direction.
In the midst of these market movements, precious metals investors are preparing for what could be a sustained rally in silver and potential further gains in gold as the global economic landscape continues to evolve.
