Silver Nears 10-Year High, Bolstered by Gold's Surge

Spot silver has rallied 2% to $33 per ounce, reaching its highest level since late October ($33.41). The precious metal has gained 14% since 2025's start, supported by a surge in gold prices due to concerns over a potential trade war sparked by U.S. import tariffs.

Factors Driving Silver's Momentum

* Gold's Record Highs: Silver has benefited from gold's successive record highs, with some analysts suggesting it could challenge its own 10-year high near $35 per ounce.
* Industrial Demand: Silver's dual role as a precious and industrial metal has supported its value, with concerns over economic headwinds potentially impacting industrial use.
* EFP Volatility: The wide spread between CME futures and London spot prices has led to increased volatility in the exchange of futures for physical (EFP) market, attracting inflows to COMEX-approved silver stocks.

Caution Ahead

Despite silver's bullish outlook, analysts caution against excessive optimism due to its historical volatility. StoneX analyst Rhona O'Connell notes that silver's price movements often amplify gold's moves by 2.0-2.5 times.

Silver's technical outlook also suggests potential vulnerability, with a wide price range of $22-$35 in 2024. Independent metals trader Tai Wong highlights the contrast with gold's 40 historic highs in the same year.

Future Trajectory

Silver's trajectory remains uncertain. A trade war could impact economic growth and industrial demand, while factors such as slower growth in China and fewer rate cuts by the U.S. Federal Reserve could also influence its price.