CITIC Futures: Industrial silver outlook currently struggles to form independent support

Under the backdrop of the Federal Reserve’s hawkish stance, a strengthening dollar, and increased volatility in risk assets, silver, as a commodity with both financial and industrial attributes, generally exhibits higher elasticity than gold, and its pullbacks are often larger. Although oil price shocks help reinforce inflation narratives, if they simultaneously suppress global demand expectations, they can somewhat hinder silver’s industrial properties, making it difficult to fully replicate gold’s safe-haven logic. The current market trading focus has shifted back to “delayed rate cuts + stronger dollar + cross-asset deleveraging,” making silver more susceptible to rebalancing at the capital level. Short-term volatility is still expected to be higher than gold. (CITIC Futures)