The start of the Federal Reserve's rate cut cycle has reduced the opportunity cost of holding interest-free assets like silver. At the same time, the relative weakening of US dollar credit has given dollar-denominated silver a passive appreciation momentum. A loose monetary environment generally benefits precious metals, and because silver has a smaller market size, it often exhibits greater elasticity than gold.

Hedging and Asset Rotation
Against the backdrop of escalating geopolitical risks, silver, known as "the poor man's gold," has absorbed a large amount of risk-hedging demand from small and medium-sized investors. After gold prices hit new highs, some funds tend to shift toward relatively undervalued silver in search of a catch-up rally. This asset rotation effect further drives up silver prices.