Inflationary Pressures / Monetary Policy: Silver, like gold, is often viewed as a hedge against inflation. Central bank policies, such as interest rate decisions, directly influence the attractiveness of precious metals compared to interest-bearing assets.

Industrial Demand: A significant portion of silver's demand comes from industrial applications, including electronics, solar panels, and the automotive sector. Global economic growth and industrial activity therefore play a crucial role in determining demand for the commodity.

US Dollar Strength: As silver is typically priced in US dollars, a stronger US dollar can make silver more expensive for investors holding other currencies, potentially reducing demand, and vice-versa. This inverse relationship is a key driver for silver prices.

Geopolitical Events / Economic Uncertainty: During periods of global instability or economic uncertainty, investors often seek safe-haven assets. Silver, alongside gold, benefits from this flight to safety, leading to increased demand and potentially higher prices.