Silver rallied sharply last week, driven by a confluence of supportive fundamental factors. Rising geopolitical tensions—particularly U.S. tariff threats and renewed trade war rhetoric—boosted safe-haven demand, lifting interest in precious metals. Meanwhile, softening U.S. real yields and expectations of a more dovish Fed stance have made non-yielding assets like silver more attractive. On the industrial side, improving data out of China and growing demand from sectors like solar energy and electronics have reinforced silver’s dual appeal as both a monetary and industrial metal. ETF inflows and fresh speculative long positions have added further support, helping the metal regain investor focus after a relatively quiet June.

Technically, silver staged a strong breakout from its recent consolidation range, rising more than 7% to trade above $39. The rally gathered pace around July 11, with the price accelerating beyond key resistance levels and comfortably breaking above the 20-, 50- and 100-period moving averages. The steep slope of these moving averages confirms strong bullish momentum, while the breakout zone around $37 now acts as a key support level. There are no immediate signs of exhaustion, and a sustained hold above $39 could open the path to testing the psychological $40 mark.