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Silver’s Surge and Slide: Gold Link, AI Demand, Risks
Silver has swung sharply—up 40% since late August, then down 15% in a week—driven by its tight 86% correlation with gold and rising industrial demand from AI data centers and electrification. With CPI near 3% and the Fed easing rates, investors are turning to hard assets like silver as an inflation hedge, reinforced by strong central bank gold buying. The silver outlook depends on two variables: progress in global trade, especially with China, and whether U.S. policymakers refocus on inflation control. For now, Fed rhetoric and fiscal plans signal more easing—suggesting precious metals could stay supported.