Silver Prices Rise This Morning, Up 2.4% Near $38.25 an Ounce
0h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
silverprecious-metals
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Silver prices moved upward sharply on the morning of Monday, June 1, 2026. The spot price rose 2.4% to trade near $38.25 per ounce as of 11:35 AM UTC, according to data aggregated by Yahoo Finance. The move extends a rally from the previous Friday's session lows, bringing the metal to its highest level since late February 2026. This surge places silver's year-to-date performance firmly in positive territory, outperforming many other major asset classes over the same period.
Silver's rally occurs amid a backdrop of persistent, albeit cooling, inflation metrics and a Federal Reserve policy pause. The broader environment for precious metals has been challenged by a strong U.S. dollar and elevated real yields for months. However, silver is uniquely positioned as both a monetary and a critical industrial metal, a dual mandate that drives its price action. The current move is primarily attributed to a confluence of strong physical demand signals from key sectors.
A key historical comparable is the rally of March 2024, when silver gained 15% in three weeks following a surge in photovoltaic manufacturing data from China. Today's catalyst chain appears similar. Data released late last week showed a significant, unexpected acceleration in new orders for consumer electronics and electric vehicle components in Asia. This directly translates into higher industrial consumption of silver, which is essential for conductive pastes, contacts, and a range of electronic applications.
The price action on June 1 is defined by specific metrics. The intraday low was recorded at $37.38 per ounce before the rally commenced. The 2.4% gain to $38.25 represents an increase of approximately $0.90 per ounce. Silver has now gained 8.7% year-to-date, significantly outpacing gold's YTD gain of 3.1%. The gold-to-silver ratio, a closely watched metric, has compressed from 86.5 to 83.2 over the past five trading sessions.
| Metric | Level (June 1 AM) | Change vs Prior Week Close |
|---|---|---|
| Spot Price | $38.25/oz | +2.4% |
| July Futures (SIU26) | $38.41/oz | +2.5% |
| Gold-to-Silver Ratio | 83.2 | -3.8 |
Trading volume in the most active COMEX futures contract for July delivery is elevated, running 40% above the 30-day average. Open interest also increased, suggesting new long positions are being established rather than just short covering. The iShares Silver Trust (SLV), the largest silver-backed ETF, saw its net asset value rise in lockstep with the underlying metal.
The primary second-order effect is a direct benefit to silver mining equities. Producers with high silver exposure, such as Pan American Silver Corp. (PAAS) and First Majestic Silver Corp. (AG), typically exhibit leveraged gains relative to the metal price. During the March 2024 rally, these stocks outperformed spot silver by a factor of 1.5 to 2. The solar energy sector also stands to gain, as higher silver prices can compress margins for panel manufacturers, but signal extremely strong end-demand, which may offset the input cost pressure for larger firms like First Solar (FSLR).
A key acknowledged risk is that the industrial demand surge may prove temporary if macroeconomic growth falters. A sharp reversal in new orders data would likely unwind the recent speculative positioning in silver futures. a renewed hawkish pivot from the Federal Reserve could strengthen the dollar and real yields, applying traditional downward pressure on precious metals regardless of industrial fundamentals. Current positioning data from the CFTC shows money managers have been net short silver futures for several weeks, suggesting this rally has likely forced a significant amount of short covering, adding fuel to the upward move.
Two immediate catalysts will test the sustainability of this move. The U.S. ISM Manufacturing PMI data for May, due for release on June 2, will provide a critical check on domestic industrial activity. A strong print could validate the Asian demand story and extend the rally. The May U.S. jobs report, scheduled for June 6, will heavily influence Fed policy expectations and the dollar's trajectory, a key headwind or tailwind for dollar-denominated commodities.
Technically, traders are watching the $38.50 level, which represents the February 2026 high. A sustained breakout above this resistance could target the $40.00 psychological handle. Immediate support now lies at the $37.80 level, which was the previous week's high. A break below $37.30 would likely invalidate the current bullish structure. For ongoing analysis on commodity price movements, see our coverage on Fazen Markets.
For retail investors, the move highlights the importance of understanding silver's dual nature. Unlike gold, silver's price is more volatile and heavily influenced by industrial cycles. Retail investors can gain exposure through physical bullion, ETFs like SLV or PSLV, or mining stocks. However, the use in mining equities amplifies both gains and losses. The current rally driven by industrial data may be more sustainable than one driven purely by financial speculation, but it remains sensitive to global economic indicators.
The 2020-2021 bull run saw silver rise from approximately $12 to nearly $30 per ounce, fueled by massive monetary stimulus, retail investment frenzy, and recovering industrial demand. The current move is starting from a much higher base near $38 and is, so far, more narrowly focused on industrial catalysts rather than broad financial desperation. The magnitude is also smaller; the 2020-2021 rally represented a 150% gain, whereas the current YTD move is under 9%. This suggests a more measured, fundamentally-driven advance.
The gold-to-silver ratio has averaged approximately 60:1 over the modern financial era, though it has spent much of the last decade well above that level, frequently trading between 70 and 90. The current ratio of 83.2, while down from recent highs, remains elevated historically. A reversion toward the long-term mean would imply either silver outperforming gold significantly or gold underperforming silver. Proponents of silver often view a high ratio as a signal that silver is relatively undervalued compared to gold.
Silver's June rally is a demand-driven breakout that may signal a shift from monetary to industrial price dominance.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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