Silver prices surge, driving pre-market gains for mining companies; ceasefire and easing rate hike concerns unlock short-term flexibility

⑴ Spot silver prices rose more than 2% on Monday, returning to a recent high range. This was supported by a sharp pullback in crude oil prices after the US and Iran paused military actions, easing market concerns over inflation and the risk of a Federal Reserve rate hike this week. Silver’s dual attributes as both a commodity and a safe-haven asset highlighted its resilience during this phase of sentiment recovery. ⑵ In pre-market trading, several US-listed silver mining company stocks climbed, with Hecla Mining and Coeur Mining both rising nearly 3%, reflecting the direct leverage effect of upstream producers to silver price movements. ⑶ Canadian stocks also showed a correlated response, with Endeavour Silver and Silvercorp Metals rising between 3% and 4%, and Wheaton Precious Metals moderately up by around 2%. Exchange-traded products tracking physical silver also received simultaneous buying support. ⑷ Overall, this broad sector rally was mainly driven by a marginal improvement in macro sentiment. Whether silver prices can maintain their strength going forward will still depend on further developments in geopolitics and the actual trajectory of Federal Reserve policy.