FX.co ★ Silver Extends Rally on US Fiscal Worries

Silver prices soared beyond $33.50 per ounce on Thursday, marking the fourth consecutive day of gains as increasing concerns over the U.S. fiscal outlook exerted pressure on the dollar and heightened the appeal of safe-haven assets. Investor confidence eroded following projections that President Donald Trump's proposed tax legislation would inflate the already sizable U.S. debt by over $3 trillion, stirring fears of financial instability. A lackluster 20-year Treasury bond auction contributed to the belief that investors might be shifting away from U.S. assets, further propelling precious metals upward. Beyond the safe-haven demand, industrial consumption of silver remains strong, particularly from the solar energy industry. Recent statistics underscore that China's wind and solar capacity skyrocketed to nearly 1,500 GW in the first quarter of 2025, fueled by a 60 GW rise in photovoltaic installations. Likewise, solar energy production in Europe surged by 30% year-over-year during the same timeframe, bolstering the positive outlook for silver.