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Silver prices rose by half a percent on Tuesday, outperforming its sister metal gold, as the equities market extended gains following the latest US inflation figures.
The metal traded at $32.80 an ounce by 10:35 a.m. ET, having touched the $33 mark during the morning session in Asia.
The move comes after Labor Department data showed a smaller-than-anticipated inflation in April with a 0.2% CPI increase, taking the price index 2.3% higher on an annual basis. Both the S&P 500 and Nasdaq 100 turned higher on the report, as did US Treasuries.
The story in the commodity space this year has been around gold, whose price has set multiple records on inflation fears, exacerbated by the aggressive tariff policies implemented by US President Donald Trump. Since the turn of the calendar, the safe-haven metal has gone up by more than 23%.
However, silver, which is often tied to gold but has more industrial uses, has also quietly recorded a double-digit gain of nearly 13% for the year, including a six-month high of $34.50 in March. Still, the metal remains some ways off its record high of about $50 set in 1980.
Importantly, silver nearly matched gold’s performance in 2024, with a 21% increase on average, according to The Silver Institute.
A report by WisdomTree Europe predicts that silver has even further room to run due to its strong industrial demand, with a price forecast of $40 by the third quarter of 2025.
