FX.co ★ Silver Holds Year's Gain

On Monday, silver prices remained close to the $32.6 per ounce level, marking a 13% increase since the beginning of the year. This was due to strong demand for silver in both bullion and industrial applications. The stability in precious metal prices is supported by expectations of lower interest rates from major central banks, which decrease the opportunity cost of holding non-yielding assets. Moderate inflation figures have bolstered predictions of two Federal Reserve rate cuts within the year. Simultaneously, the Bank of England has reduced its benchmark rate, and the People’s Bank of China has lowered rates on liquidity operations. Furthermore, the rise in investments for solar panels, silver's primary industrial application, continues to drive purchases from manufacturing facilities. Recent data indicates that China’s wind and solar capacity reached nearly 1,500 GW in the first quarter of the year, propelled by a 60 GW increase in photovoltaic power. Similarly, solar power generation in Europe increased by 30% on an annual basis during the first quarter.