The iShares Silver Trust (SLV) surged 6.57% during Wednesday's trading session, outpacing broader market trends as silver prices breached $90 per ounce. The rally reflects a confluence of geopolitical uncertainty, macroeconomic shifts, and robust industrial demand.
Geopolitical tensions, including U.S. military strikes in Venezuela and threats against Iran, drove safe-haven inflows into silver. Concurrently, softer-than-expected U.S. inflation data cemented expectations of Federal Reserve rate cuts, weakening the dollar and bolstering precious metals. Silver's dual role as a monetary hedge and industrial input—critical for AI and solar technologies—amplified gains amid a structural supply deficit.
Retail investors further fueled the rally through aggressive physical silver purchases, while potential U.S. tariffs on imports exacerbated supply concerns. Analysts note that silver's year-to-date gain of ~29% (after a 141% surge in 2025) underscores its transition from a "legacy metal" to a strategic asset in turbulent markets.
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