Gold’s recent performance provides further insight into precious metals trends, with gold also testing key technical levels around its 50-day moving average. The trade-off between gold and silver often reflects broader sentiment in the metals market. Gold prices have recently been supported by safe haven inflows and a weaker dollar, reinforcing similar underlying conditions that could benefit silver in the near term.
Support from lower yields and industrial demand
UBS analysts highlighted that lower real US yields and stronger global industrial production are expected to create a favorable environment for silver in 2025. These factors are likely to drive demand, reinforcing silver’s dual role as an industrial metal and a store of value. UBS expects silver to trade between $36 and $38 an ounce by 2025, reflecting confidence in the broader economic recovery and increased industrial activity.
Similarly, gold has been supported by falling government bond yields, which reduce the opportunity cost of holding non-yielding assets such as precious metals. With the Federal Reserve signaling a cautious approach to rate cuts in 2025, yields may continue to fall, which will also benefit silver.
Geopolitical uncertainty increases the appeal of safe havens
Geopolitical tensions are another factor supporting both silver and gold. Recent conflicts, including Israeli airstrikes in Gaza and Russian drone strikes on Kiev, have increased uncertainty, increasing demand for safe haven assets. Investors often turn to silver alongside gold during periods of geopolitical tension, further increasing upside potential for the metal.
Analysts have noted that market participants are also pricing in potential inflationary pressures related to fiscal policy. Silver, like gold, is seen as a hedge against inflation, which could become more relevant as global economic conditions shift toward higher prices and supply chain restrictions.