The price of silver gained 1.70% on Monday over fears of a Middle East escalation. Gold was higher by 0.33% reaching a new record price and attracting ETF investors.
XAGUSD – Daily Chart
Silver has jumped above the psychological $30 price barrier and that will now be key support. The resistance levels on the weekly chart could be $35 and the all-time high at $50.
Investors have been buying up gold and silver as they expect the Federal Reserve to cut its benchmark interest rate. Last week’s inflation figures from the U.S. confirmed that prices were still on a downward path.
But there was also news from the Middle East with the shock death of Iran’s President in a helicopter crash. That had investors running for safe-haven assets over fears of further tensions in the region.
However, official state confirmation on Monday did not mention any wrongdoing, saying that the aging helicopter went down over mountains. A new interim President has been announced and may ease fears for gold and silver investors.
Demand for silver in China has also been rising, silver closed at $32.96 on the Shanghai Exchange Friday. Arbiters buy silver at $30.00 or lower in the US and sell it at a premium to China.
Longer term, the metal is also expected to benefit from growing industrial demand. Last month, the Silver Institute’s World Silver Survey report predicted a 9% jump in the commodity’s industrial demand this year, helped by renewable energy demand. Silver used in solar panel manufacturing increased 20% in 2024 to 232 million ounces.
With gold hitting a new all-time high above the $2,450 level, ETF investment has been growing and could help to drive further price increases for the underlying physical metal.