Investing.com -- Silver prices retreated slightly on Thursday, falling 0.4% to $38.6 an ounce in midday trading after approaching a 14-year high in recent sessions.
The precious metal has outperformed gold in recent days, which analysts at Commerzbank (ETR: CBKG ) attribute to a "catch-up effect" as investors look for less expensive alternatives following gold’s substantial rally this year.
"Despite this spike, silver remains less suitable than gold as a safe-haven asset," said Thu Lan Nguyen, head of FX and commodity research at Commerzbank.
Gold has gained approximately 30% since the beginning of 2024, leading some investors to believe its upside potential may be limited. This perception has prompted a shift toward silver as a more affordable option in the precious metals space.
However, Nguyen cautioned that further price increases for silver might not be justified, noting that physical demand will likely be dampened by the impact of U.S. tariffs.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.