Spot silver opened significantly higher on the morning of January 26th. As of 9:48, it had broken through the $108 per ounce barrier, recording an intraday gain of over 4%.
Spot gold opened above $5000 for the first time ever and continued its upward trajectory, surpassing the $5070 mark.
Driven by the sharp rise in precious metals, A-share gold stocks collectively opened higher. Hunan Gold Corporation Limited hit the daily limit-up, while Beijing Xiaocheng Technology Stock Co.,Ltd., Sichuan Gold Co., Ltd., Shandong Humon Smelting Co.,Ltd., Hunan Silver Co.,Ltd., Chifeng Jilong Gold Mining Co.,Ltd., Western Region Gold Co.,Ltd., and Zhongjin Gold Corp.,Ltd. all followed with gains.
Unlike gold, which is primarily driven by its safe-haven attributes, the rise in silver prices is supported by both its financial and industrial properties. In recent years, sustained growth in industrial demand from sectors like photovoltaics and new energy has led to a global silver supply deficit for five consecutive years. This situation, compounded by factors such as tightening export controls and inventories at historical lows, has further intensified supply-demand imbalances, resulting in significantly higher price elasticity for silver compared to gold.
Commenting on this, Zhou Songyuan, a precious metals researcher at Haitong Futures Research Institute, believes the recent price increases for gold and silver are mainly influenced by geopolitical factors.
Wu Zijie, a precious metals researcher at Jinyuan Futures, stated that former President Trump's unpredictability has recently shaken market confidence in US assets, causing避险 funds to优先 allocate to gold, thereby pushing its price to continuously刷新 highs. Against this backdrop, buying of non-US currencies has also been被动 strengthened due to exchange rate effects.
Similarly, Zhou Mi'er, a macro analyst at Hundun Tiancheng Futures, opines that the rise in silver is more a result of liquidity expectations rather than market pricing based on避险 factors. The global trade tensions triggered by Trump and the persistently rising US fiscal deficit have weakened confidence in US assets, prompting investors to use gold as a hedging tool. In the long term, the favorable outlook for precious metals and market allocation strategies towards them are not expected to change.
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