According to Rhona O'Connell, lead Analyst at StoneX, the ongoing silver rally is driven by market transformation and industrial demand. The observed easing of the gold market's response to global risks is contributing to the divergence of the precious metals' price dynamics.
Nevertheless, as she warns, one should not discard gold for the time being. According to her estimates, now the participants of the precious metals market have taken a wait-and-see position on gold after 18 months of active growth, giving way to silver. In addition, there is no significant impulse for a surge in value yet. All this leads to the observed restrained price movement of the main precious metal.
However, O'Connell emphasizes the persistence of uncertainty in global markets. This, in her opinion, will contribute to the strengthening of interest in gold when it drops to the level of $3300 or lower.
Meanwhile, the silver market, as she points out, is now facing a structural deficit and investment activity remains weak. O'Connell predicts the deficit will worsen in the future with the rapid advancement of artificial intelligence technologies, growth of solar panels installations, and electrification of vehicles.