Insights 
VT 
Silver prices (XAG/USD) fell on Wednesday to $32.74 per troy ounce, a 1.46% decrease from Tuesday’s $33.23. Year-to-date, silver has increased by 13.31%.
The Gold/Silver ratio reduced slightly to 103.09 from the previous day’s 103.28. Silver is valued for its historical use as a store of value and medium of exchange, often seen as a hedge against inflation.
Factors Influencing Silver Prices
Various factors influence silver prices, including geopolitical instability and interest rates. The asset is priced in US Dollars, with a strong dollar typically suppressing silver prices.
Silver’s industrial demand also impacts its price due to its high electric conductivity, mainly in electronics and solar energy. Changes in demand from the US, China, and India, particularly in the jewellery sector, can cause price fluctuations.
Silver often mirrors gold’s movements, rising when gold prices do. The Gold/Silver ratio can indicate relative valuations between the two metals, with a high ratio suggesting that silver might be undervalued.
We’ve seen a modest drop in silver, settling at $32.74 per troy ounce as of Wednesday, showing a 1.46% dip from the previous session. Nonetheless, if we glance at the broader picture, silver remains up around 13% since the beginning of the year. That’s not something to overlook, especially in a climate where macro drivers are tugging hard on asset prices, particularly in metals.
Gold Silver Ratio and Market Dynamics
The Gold/Silver ratio, now at 103.09, down slightly from 103.28, hints at a small but noticeable shift. This ratio, which shows how many ounces of silver equate to one of gold, is still sitting in upper ranges. When it stretches like this, it traditionally suggests silver might be relatively cheap compared to gold — though it rarely adjusts swiftly without a clear external push. Traders sometimes lean on this ratio to spot reversals or momentum changes, but real-world conditions like industrial demand and policy shifts tend to drive the primary moves.
Let’s not forget that silver isn’t just a safe haven—it’s a workhorse, heavily tied to manufacturing cycles, especially electronics and solar technologies. With its high conductivity and reflective properties, it plays a necessary role in modern tech. Demand is often dictated by industrial output from countries like China and the US, and during expansion phases, this demand can spike. But when sentiment sours or PMI data comes soft, futures markets react swiftly.
Interestingly, we continue to notice that silver tends to track gold, just not always in real-time or proportionally. The trailing nature of silver’s movement can sometimes delay adjustments in pricing, creating a lag that opens short-term windows for more tactical positioning. And while that relationship provides a directional steer, it’s not always linear. Price moves in gold, caused by central bank policy leanings or inflation expectations, nearly always spill over into silver, if with a slight pause.
When the dollar strengthens, as it has in several sessions recently, dollar-denominated commodities like silver tend to find the air a bit thinner. A stronger dollar makes silver more expensive for foreign buyers, which tampers with demand just enough to tilt the price. Interest rate expectations in the US, particularly after recent remarks from Fed officials, spook or support metals almost instinctively. That’s something we have to factor in daily.
Jewellery demand, particularly from India and China, still holds weight. Recent trade data suggests that while the festival demand did drive up short-term buying a few weeks back, a retracement isn’t surprising — cooled off by shifting rate outlooks or inventory builds. These aren’t constants, but rather pulse points worth monitoring in short bursts; ignoring them can mean missing inflection signals when positioning for next-week expiry.
Moving through early June, our attention remains split between central bank rhetoric and PMI data coming from Europe and the US. With headlines still whispering about rate stickiness rather than cuts, traders leaning on leverage or front-running price have to be sharper about timing. Momentum indicators have softened slightly, which might lend itself to short-term compression, but we’ll treat that as tactical rather than trend-changing.
Looking at options flow and open interest, there’s been no aggressive repositioning just yet. Some contracts further up the curve point to a possible rebound, but without a clear catalyst, snapbacks remain difficult to anchor in the near term. Watching for positioning shifts in the gold complex might offer early clues, especially if the current ratio holds near triple digits for much longer.
