The price of silver (XAG/USD) has experienced a significant surge, climbing to around $31.18 on Friday, marking a two-day consecutive increase. This rise can be attributed to the growing demand for silver in China’s solar industry, which has pushed global prices up by 10%. The price hike comes in the wake of the U.S. Federal Reserve’s recent decision to decrease interest rates by 50 basis points as a preemptive measure against inflation. This move has spurred an appetite for silver among investors seeking safe-haven assets amidst economic uncertainty and a weakening U.S. Dollar. Silver prices displayed volatility following the Fed’s rate cut, initially reaching a peak of $31.20 before pulling back to $29.70 due to strengthened U.S. Treasury yields and Dollar Index. However, a subsequent rebound saw silver prices soar to $31.29, highlighting silver’s enduring appeal as a hedge against economic instability. The strong demand in China, buoyed by a thriving solar panel industry and active import trade, has contributed to the elevated silver prices. The People’s Bank of China’s decision to maintain its Loan Prime Rate at 3.35% has further supported economic stability and sustained demand for silver. Global monetary institutions such as the Bank of Japan and Bank of England have also upheld their interest rates, reflecting a trend of cautious monetary policies worldwide. Given the prevailing economic uncertainties and escalating geopolitical tensions globally, silver remains an attractive safe-haven asset. With China’s demand for silver on the rise and economic instability lingering, silver is poised to maintain its upward trend in the market.