The price of silver experienced a dramatic surge in international markets, opening with a significant upside gap and climbing to an intraday high of $75.968 per ounce. This sharp movement represented a gain of nearly 6% against the previous closing price, driven primarily by escalating geopolitical tensions.
Geopolitical Tensions Fuel Market Fear
This substantial rally in silver prices is a direct reaction to an unprecedented military escalation. Last week, on a Saturday morning, the United States launched an attack on Venezuela. In a move that stunned global observers, US forces abducted the country's president, Nicolas Maduro. US President Donald Trump announced the success of this operation on his social media platform, Truth Social, confirming Maduro's capture.
Financial experts immediately linked the market's volatility to this event. The core fear stems from potential disruptions to global silver supply chains. Market analysts are anticipating that the conflict could severely hinder silver exports from two critical nations: Peru and Chad. These countries rank as the largest exporters of silver in global merchandise trade. Any difficulty in their export processes would create an immediate supply crunch.
Expert Outlook on Demand-Supply and Price Targets
Commenting on the bullish trend for silver prices, Anuj Gupta, Director at Ya Wealth, provided a clear explanation. "Silver price today is in a bull trend as the market is under the fear of demand-supply constraint caused by the US-Venezuela conflict," he stated. Gupta elaborated that following the US attacks, major exporters Peru and Chad may struggle to export the white metal smoothly. If this happens, the global demand for silver may not be adequately met, and the current price is already factoring in this potential gap.
Gupta further projected that COMEX silver prices are expected to touch $78 per ounce. However, he also cautioned investors, noting that the probability of profit-taking at these higher levels is present. He strongly advised market participants to maintain strict stop-loss orders, emphasizing that these levels would play a pivotal role in determining silver's price movement throughout the trading session.
Investment Advice in a Volatile Market
The prevailing sentiment among experts is that the anticipated demand-supply gap is likely to further fuel silver prices in the near term. The white metal seems poised to test the $78 per ounce mark. However, the rapid ascent also brings with it the risk of a sharp correction triggered by profit-booking. This dual possibility makes risk management crucial for investors navigating this volatile landscape. The consensus advice is to track key technical levels diligently and employ disciplined stop-loss strategies to protect capital from sudden downturns while capitalizing on the bullish momentum.
