Refusing to Be Gold’s Supporting Role. Silver Prices Surge 6%, Breaking the $77 Mark

TradingKey - Ceasefire agreement drives rebound in gold and silver prices, but silver outperforms gold due to its industrial attributes.

On April 8, a ceasefire agreement between the U.S. and Iran ignited the precious metals market, sending both gold and silver prices surging to nearly two-week highs. Notably, spot silver prices ( XAGUSD) surged by more than 6%, breaking through the $77 per ounce threshold to reach a high of $77.64, a new high since March 18.

Silver price chart, Source: TradingView

Meanwhile, spot gold prices rose by more than 2%, breaking through the $4,800 per ounce barrier to reach a high of $4,836, touching its March 19 peak. Clearly, both gold and silver rebounded past key levels, but gold's gains lagged behind those of silver. Why is this the case?

The easing of U.S.-Iran tensions and the reopening of the Strait of Hormuz have significantly alleviated global supply chain and energy concerns. This has prompted capital to rotate from gold as a pure safe-haven asset toward industrial metals linked to economic recovery expectations, allowing silver to benefit more. However, if the Islamabad negotiations prove fruitless, silver, as a high-volatility asset, could also see a faster retracement than gold.