Chinese Demand Boosts Silver Prices
Silver prices rose above US$63.5 per ounce during Monday's trading (August 10), reaching a seven-week high. The rally followed growing market confidence that the Federal Reserve would not rush to raise interest rates this year.
Positive sentiment was driven by weak US labor market data. July Nonfarm Payrolls fell unexpectedly, prompting the market to scale back expectations for an imminent Fed rate hike.
Oil prices remaining well below their peaks seen during the Iran conflict also helped alleviate concerns regarding energy-driven inflation. This environment makes precious metals like silver more attractive, as the opportunity cost of holding non-interest-bearing assets decreases.
Beyond interest rate factors, industrial demand has also supported silver prices. In June, China recorded a 62.5% year-on-year increase in imports of silver-bearing ores, reaching approximately 219,000 tons.
This demand aligns with rising solar panel production and power grid expansion in China—two sectors that require significant amounts of silver.
Newsmaker Analysis: Silver's momentum remains bullish, supported by expectations of lower interest rates and strong industrial demand. However, the risk of a spike in energy prices warrants attention, as it could reignite inflation concerns and cap silver's gains. (arl)
Source: Newsmaker.id
