​EBC Markets Briefing | Silver prices jump; Yemen clashes sent oil higher

Precious metals gained ground on Tuesday following yesterday's plunge. The gold-silver ratio has narrowed from over 100 in April to under 70, signalling risk appetite on the rise.

The value of China's silver fund plunged by its maximum daily limit of 10% on Thursday, ending a frenzied bull run that had prompted its manager to issue a rare series of warnings.

Silver has been at the centre of intense investor interest in precious metals, with the spectacular rally gaining further momentum from a historic short squeeze in October.

While institutions are growing cautions with silver on the verge of $80 per ounce, many industry experts and a solid majority of retail traders see another standout year for the metal in 2026.

China's battery storage this year overtook its capacity of conventional pumped hydro, a geographically more limited technology that uses water stored behind dams to generate electricity when needed.

Silver is crucial in battery storage for enhancing conductivity, improving performance, and enabling newer tech like solid-state batteries, used in everything from hearing aids to massive EV packs.

As silver steadied at $70.5, higher than the low it hit in 24 December, the uptrend is intact. The price could hit $76 in the short term, which would expose $79.

Asset recap

As of market close on 29 December, among EBC products, iShares MSCI SOUTH KOREA ETF led gains. Semiconductor buying lifts South Korea stocks, reflecting brokerages' upward revisions to share prices.

Tesla shares were down after South Korea's L&F said the value of its battery-material supply deal with Tesla had shrunk to $7,386 from an earlier projection of $2.9 billion.

Oil prices climbed as Russia accused Ukraine of attacking Putin's residence, while traders braced for potential supply disruptions in the Middle East due to rising tensions in Yemen.

EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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