The US Dollar Index (DXY) rose to around 104.50, supported by robust economic data and a recent 25 basis point rate cut by the Federal Reserve, putting the benchmark at 4.50%-4.75%.
Growing industrial demand could position silver for future gains
Despite the recent declines, analysts suggest that silver may outperform gold in the coming years due to its wide industrial applications. While gold has soared to record highs, silver has struggled to break the $30 mark.
However, analysts at UBS predict that silver could rise between $36 and $38 per ounce by 2025, driven by demand in the technology, electric vehicle and renewable energy sectors.
“Silver’s industrial applications give it an edge in a growing economy,” said one analyst, noting its essential role in solar panels, electronics and medical equipment.
Some projections even suggest that silver will reach $50 by 2025 and possibly reach $77 by 2028.
Chinese economic stimulus is expected to boost silver demand
On a global front, China’s potential stimulus measures could add further support for silver. Following a recent meeting of the Standing Committee of the National People’s Congress, reports indicate that China’s stimulus package could exceed 10 trillion yuan.