Today’s market analysis on behalf of Bas Kooijman, the CEO and Asset Manager of DHF Capital S.A
Silver extended its rebound for a third consecutive session on Tuesday, supported by escalating geopolitical risks and persistent supply deficits. Developments in Latin America injected fresh geopolitical uncertainty into the market. Comments from President Trump also affected sentiment and could amplify safe-haven flows into precious metals. Meanwhile, tensions remain elevated across Eastern Europe and the Middle East, reinforcing silver’s defensive appeal.
Beyond geopolitics, silver’s bullish momentum is underpinned by economic factors. Weaker-than-expected US manufacturing data and dovish expectations regarding the Federal Reserve could fuel the focus on policy easing in 2026. Although the Fed is expected to hold rates steady later this month, forecasts continue to point to two rate cuts this year.
The bullish outlook is further enhanced as global inventories continue to tighten. Stocks in Shanghai Futures Exchange warehouses have fallen to decade lows. At the same time, the silver market could remain in a deficit, which could continue to drive prices up.