Silver rose 0.47% to 95,915 as the U.S. dollar weakened, as U.S. economic data was mixed and global tensions mounted. Weak retail sales and the biggest drop in the producer price index in five years raised hopes that the Federal Reserve might ease its policies. Many believe the U.S. may want a weaker dollar to boost exports. Lower-than-expected inflation in April weighed on the dollar, helping gold and silver prices rise.
Strong industrial use is expected to boost silver demand in 2025, leading to a sixth straight year of supply shortages. Industrial silver use is expected to grow 3% to 700 million ounces, driven mainly by demand for electronics and green energy. However, a small 1% decline in overall demand and a 2% increase in supply would reduce the global silver deficit by 21% this year to 117.6 million troy ounces, according to the Silver Institute.
