Silver showed volatility but remained near multi-year highs as markets weighed political developments and industrial demand. The removal of a Federal Reserve governor over alleged mortgage fraud intensified debate on central bank independence and could raise pressure for earlier rate cuts, boosting non-yielding assets like silver. Industrial demand strengthened as China's solar cell exports rose over 70% in H1 2025 and the country added a record 93 GW of solar capacity in May, reinforcing silver's role in the energy transition. Significant investor positioning also supported prices: global silver ETPs drew about 95 million ounces in H1 2025, lifting holdings to 1.13 billion ounces.
Silver recorded some volatility on Tuesday, but held near multi-year highs as investors balanced political developments with strong industrial. The market's focus could turn to safe-haven assets after US President Donald Trump announced the removal of Federal Reserve Governor Lisa Cook over alleged mortgage fraud, triggering renewed debate over central bank independence. The move could increase pressure for earlier rate cuts, particularly as Trump continues to advocate for rates, benefiting non-yielding assets like silver.
Industrial demand remained a key source of support. China's solar cell exports jumped over 70% in the first half of 2025, driven by strong Indian demand, while the country added a record 93 GW of solar capacity in May alone, a 300% year-on-year increase. This reinforces silver's strategic role in the energy transition, which could continue to underpin the metal.
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