Silver prices rose as the US dollar fell to its lowest level in two weeks. This happened as people were worried about the US economy and government spending. Silver rose 1.92% to close at ₹97,288. The dollar weakened after Moody’s downgraded the US debt rating to “AAA” from “AA1” due to high debt and large budget deficits.
Geopolitical tensions also weighed on the market. The U.S. President said that Russia and Ukraine may soon start talks on a ceasefire. This has worried investors. Due to the ongoing financial uncertainty, investors now expect the US Federal Reserve to cut interest rates by at least 0.54% this year,
Although this is 21% lower than in 2024, the global silver deficit in 2025 will be 117.6 million ounces, the silver company has predicted. Industrial use, particularly in green technology and renewable energy, is still the main driver of high demand, and is expected to reach peak levels of over 700 million ounces.
