Favorable macroeconomic factors combined with strong industrial demand suggest that silver prices are likely to experience a strong upward trend in the short term.

Recently, the international precious metals market has seen a surge in activity. The spot gold price in London rose sharply from around $3,940 per ounce to over $4,400 per ounce, while the spot silver price in London increased from around $54 per ounce to breaking above $66 per ounce, with maximum cumulative gains of over 12% and 21% for the two metals, respectively. In this round of rising prices, the silver market has shown a characteristic of lagging in its price surge initially, but then accelerating even more dramatically. Industry insiders believe that the subpar performance of U.S. non-farm payroll data, the decline in U.S. treasury yields, the pullback of the U.S. dollar index, and adjustments in market expectations regarding the Federal Reserve's monetary policy have all contributed to an improved macro environment for precious metal prices recently. The continuous purchases of gold by global central banks also provide medium to long-term support for the precious metals sector, while industrial demand in fields such as photovoltaics and new energy offers fundamental support for silver that is distinct from gold. Furthermore, the smaller scale of the silver market and its higher price elasticity mean that once risk appetite improves among investors, its price increases are often more pronounced. In the short term, supported by multiple favorable factors, silver prices are likely to continue a trend of strong volatility. The medium to long-term trend of silver prices, however, is highly dependent on factors such as the timing of the Federal Reserve's policy shift, making the overall sentiment more inclined towards price increases than decreases.