Silver prices climbed above $33.10 per ounce on Wednesday, reaching their highest level in three weeks, as a weakening US dollar and robust industrial demand continued to buoy the precious metal.
Silver tests three-week high
Despite a fresh uptick in long-dated Treasury yields—typically supportive of the dollar—the greenback remained under pressure, reflecting growing skepticism over the relative strength and stability of US assets. This dollar softness, in turn, made dollar-denominated commodities like silver more attractive to international buyers.
The shift also reflects broader market dynamics, with investors increasingly turning to precious metals as a hedge against geopolitical and economic uncertainty. Demand for safe-haven assets intensified following reports that Israel is weighing potential military action against Iran, a development that has amplified tensions in the already volatile Middle East. Such geopolitical risks often drive flows into tangible assets like silver and gold, seen as reliable stores of value in times of crisis.
Benefits from a surge in green energy investments
On the industrial front, silver continues to benefit from a surge in green energy investments, particularly in solar technology. Silver is a key component in photovoltaic (PV) cells used in solar panels, and demand from the sector remains strong. Newly released data showed that China’s wind and solar capacity surged to nearly 1,500 gigawatts in the first quarter of the year, propelled by a massive 60GW increase in solar photovoltaic power alone. In parallel, Europe reported a 30% year-over-year jump in solar power output during the same period, underscoring a broader global push toward renewable energy.
This twin tailwind—geopolitical risk boosting safe-haven demand, and accelerating clean energy investments driving industrial consumption—has positioned silver as one of the standout performers among precious metals. Analysts suggest that if these trends persist, silver could see further upward momentum in the near term, potentially testing multi-year highs.
