Silver Nearing All-Time Highs (AHA) in Europe: What’s Driving The Surge?
The comments below are an edited and abridged synopsis of an article by Investing Haven
(537 words, 3 minutes read time.)
While much of the investor community remains fixated on silver priced in US dollars, the broader narrative seems to overlook a key development: Silver priced in Euros (XAGEUR) is on the verge of reaching an all-time high (ATH). This divergence highlights regional dynamics often missed in mainstream discussions about precious metals.
Mixed Sentiments on Precious Metals
A notable shift in sentiment comes from Goldman Sachs, which has become “less bullish” on gold. Although Goldman maintained a firmly bullish stance in its 2025 gold forecast published last fall, the firm recently revised its outlook, citing fewer anticipated US interest rate cuts as a primary factor.
While rate cuts undeniably influence gold and silver prices, many argue that real interest rates remain the ultimate driver of precious metal performance. Other sources echo this sentiment, focusing on how upcoming US economic data could shape the Federal Reserve’s monetary policy and impact gold and silver markets.
Silver’s industrial role also adds complexity. UBS recently stated on CNBC that silver could “gain momentum” if industrial production rebounds, underscoring the dual nature of silver as both an industrial and investment asset.
Yet, amid these global perspectives, the unique dynamics in Europe deserve attention.
Silver in Euros Near ATH
Financial headlines often focus on silver priced in US dollars, which remains approximately 40% below its ATH. However, silver in other currencies, like the Australian dollar (AUD), achieved multiple ATHs in 2024. Similarly, silver priced in Euros is approaching its own historic peak, reflecting regional currency fluctuations and market demand.
A closer look at the XAGEUR daily chart reveals a compelling trend. A medium-term rising trendline intersects with a long-term resistance zone (€28 to €31), forming a confluence point. This critical area entered focus at the beginning of 2025 and is expected to play a pivotal role in February through April.
If silver breaks decisively above this range, it could trigger a significant rally, cementing new highs for the metal in Europe.
Implications for European Investors
For European investors, silver’s resilience offers a glimmer of hope amid broader economic challenges. Weakness in European stock markets has been offset by the drop in the Euro relative to the US dollar, boosting the value of precious metals held in Euros.
This currency-driven dynamic rewards European silver holders, offering a hedge against broader market underperformance. With XAGEUR consolidating within the ATH range, a breakout seems increasingly likely. Timeline analysis suggests this could happen in the coming months, setting the stage for potential fireworks in the silver market by spring.
Conclusion
While silver’s US dollar pricing garners most of the attention, European investors are witnessing a different story unfold. The combination of a weakening Euro and strong silver demand positions XAGEUR for a historic rally. If current trends hold, silver priced in Euros could reach all-time highs between February and April 2025, further validating its status as a valuable asset in uncertain times.
For European silver investors, this represents not only an opportunity but a reminder of the diverse factors shaping global precious metals markets.