Gold’s push to record highs last week provided indirect support to silver. A weaker US dollar, which fell 1.77%, and falling treasury yields fueled Gold’s rally and created favorable conditions for silver as a cheaper alternative for international buyers.
However, silver’s dual role as both a safe haven and an industrial metal has limited its gains. Unlike gold, which has rallied purely on inflationary concerns and risk aversion, silver’s dependence on global economic activity left it struggling for stronger momentum.
What could win silver this week?
The upcoming Federal Reserve policy meeting is the primary focus for traders. While a rate cut is not expected, Chairman Powell’s comments could shift the dollar and treasury yields, potentially impacting silver prices. Key US economic data, including Q4 GDP and the PCE index, can also influence sentiment.
From an industrial perspective, China’s policy announcements will be critical. Any signs of infrastructure investment or rate relief could boost silver demand, especially in electronics and solar panel production. Conversely, further delays in economic clarity from Beijing could weigh on sentiment.