Silver Breaks $36 Barrier; Gold Steady on Weak U.S. Data

Spot silver soared past $36.30 per ounce in early Friday trading, marking its highest level in over 13 years and capping a dramatic rally fueled by robust ETF inflows and strong industrial demand, particularly from the solar sector. Silver’s price has jumped nearly 25% year-to-date, with today’s 1.26% gain reflecting renewed interest from momentum-driven investors seeking alternatives to gold. Silver-backed exchange-traded funds recorded inflows of 2.2 million ounces on Wednesday, and the market’s bullish momentum now targets resistance at $36.78. This surge is underpinned by a supply deficit, with the Silver Institute projecting another year of demand outpacing supply, further supporting elevated prices.

Gold, meanwhile, remains resilient, with spot prices down 0.4% this morning at $3,340 per ounce, heading for a weekly gain of over 2%. The yellow metal continues to benefit from safe-haven demand amid ongoing geopolitical tensions and a series of weak U.S. economic indicators, including disappointing labor market data. Central banks are on track for a fourth consecutive year of massive gold purchases, reflecting a global move away from dollar-denominated assets and further underpinning gold’s strength. While gold’s rally has moderated compared to silver’s breakout, both metals are drawing significant investor interest as uncertainty persists in global markets.

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