Silver prices have extended their recent recovery rally, gaining fresh momentum as market participants adjust their expectations for US monetary policy.
The rebound marks a notable shift from the bearish sentiment that had weighed on the metal in recent sessions, with traders increasingly pricing in a more dovish stance from the Federal Reserve.
The move in silver mirrors broader strength in precious metals, with gold also posting gains as investors seek safe-haven assets amid evolving macroeconomic signals.
The repricing reflects a growing consensus that interest rates may remain lower for longer, reducing the opportunity cost of holding non-yielding assets like silver.
However, the rally faces headwinds from the industrial side of the market.
Analysts have raised concerns about potential further declines in silver prices, citing a surge in costs during the 2025 rally that is now deterring demand from key industrial users.