Silver market driven by US-China tensions and industrial demand

The silver market is currently influenced by a combination of macroeconomic indicators and geopolitical tensions. Investors are closely monitoring upcoming US economic data, including labor market reports and PCE inflation figures, to gauge future interest rate and monetary policy directions.

Trade tensions between the United States and China are also impacting prices. Discussions regarding tariffs, artificial intelligence technology controls, and Chinese export restrictions on critical minerals are central to market volatility. Because silver is heavily utilized in high-tech industries, it is particularly sensitive to supply chain shifts and trade policies.

Industrial demand remains a primary driver, fueled by the expansion of data centers for artificial intelligence, the solar industry, and electric mobility. This demand is contributing to a structural supply deficit. CLSA estimates the global silver market deficit for 2026 will reach 46.3 million ounces, up from 40.3 million ounces the previous year. Analysts note that mine production remains relatively inelastic as silver is frequently produced as a byproduct of other mining operations.