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Silver shines with a 10 percent rally in last one month, but can it burn brighter?

Any slowdown in global growth is likely to pause the bull run in silver, as the demand from manufacturers could take a beating. Historically, any rise in silver prices has been closely linked to global economic growth.

June 13, 2025 / 12:52 IST
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Any substantial global economic downturn or even partial recession would directly impact the industrial demand for silver, while a prolonged slowdown in Chinese manufacturing or a major policy shift by Beijing could dent the global industrial demand.

International silver prices have clocked a 10 percent rise over the past month, powered by a safe-haven demand as well as rising industrial demand, at a time when the supply has been constricted in recent years.

Silver, despite commanding safe-haven demand, does not always move in tandem with gold, as industrial demand – from sectors like electric vehicle, solar power, renewables and healthcare - often drives prices. The ongoing trade negotiations between the US and China has spurred the silver rally, even as gold underperformed over the past one month.

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Bhavik Patel, senior commodities analyst at Tradebulls Securities said any progress in trade talks between US and its trading partners should help reduce tariffs, increasing the demand for silver as an industrial metal.

A weaker dollar has made silver more affordable, and anticipated delays in US Federal Reserve’s rate hikes are further encouraging investors to turn to precious metals, said Aamir Makda, commodity and currency analyst, Choice Broking.