Despite increasing demand, the price of Silver (XAG/USD) continued its downward trajectory in the Asian session on Thursday, undoing much of the gains made in the previous day. The metal’s significance as a key industrial and electrical material has grown, leading to potential support for prices. Nonetheless, silver lost steam and dropped to a low of $29.34 during the day. This decrease is likely linked to the bearish movement in gold prices. As gold weakens, the interest of investors in precious metals, such as silver, tends to diminish, resulting in reduced demand. Given the typical correlation between silver and gold, the downturn in gold directly affects the prices of silver. Silver Prices Surge Amid Increasing Demand and Tightening Supply The price of silver has seen a sharp increase this year, with forecasts indicating a possible climb from $30 to $100 per ounce in the upcoming years. This uptrend has prompted a flurry of new offerings on the ASX as businesses seek to capitalize on the flourishing silver market. The expanding range of applications for silver, spanning industrial use to renewable energy, is propelling its growing worth. This has garnered global attention, with companies like Andean Silver restarting operations in Chile and Sun Silver exploring opportunities in Nevada. Silver’s crucial role in renewable energy, especially in solar panels, combined with its status as a vital mineral, is fueling demand. Key Points Silver Maintains Position Above $29: Supported by a weakening US Dollar and speculation of a potential Fed rate reduction. Expectations of Fed Rate Cut: Weaker US job growth and FOMC backing increase the likelihood of a 50-basis-point cut, bolstering silver. Geopolitical Tensions Boost Silver: The ongoing conflict between Israel and Hamas prompts investors to turn to silver as a safe-haven asset amid uncertainties.