FX.co ★ Silver Rises to 2-Month High

Silver climbed to $68.2 per ounce on Wednesday, its highest level in two months, driven by firm industrial demand and renewed interest in the debasement trade. The move followed the US Treasury’s announcement that it will double buybacks of long-term maturities, complementing other measures aimed at curbing the rise in long-end yields along the curve.

Beyond lowering borrowing costs, the signal that the federal government is actively working to suppress yields improved expectations for dollar liquidity, heightened concerns over larger fiscal deficits, and prompted investors to rotate back into hard assets as a hedge against declining purchasing power.

Robust industrial demand for silver further underpinned prices. Chinese imports of silver-bearing ores jumped 62.5% year-on-year in June to 219,000 tonnes, consistent with expanding output in solar panel manufacturing and electricity grid infrastructure to support the rapid electrification drive promoted by the central government.