FX.co ★ Silver Tests 3-Week High

Silver prices surpassed $33.1 per ounce on Wednesday, reaching their highest level in three weeks. This increase is attributed to a weaker dollar and sustained industrial demand. Despite a rise in long-term Treasury yields, the dollar faced pressure amid ongoing skepticism about the supremacy of U.S. assets, which has prompted a shift towards precious metals for security. Additionally, reports of potential military action by Israel against Iran have contributed to geopolitical tensions, further driving demand for safe-haven assets. Simultaneously, the demand for silver has been bolstered by increased investment in solar panels, silver’s primary industrial use. Recent data indicate that China's wind and solar capacity expanded to nearly 1,500 gigawatts in the first quarter, boosted by a 60 gigawatt increase in photovoltaic power. Correspondingly, solar power output in Europe rose by 30% on an annual basis during the same period.