Silver Surges Amid AI Capex Boom, Gold Lags Behind
Silver is outperforming gold despite both metals facing a stronger dollar and a more hawkish Fed, a divergence that may be driven by renewed enthusiasm for AI capex.
The gold/silver ratio has fallen to around 65, its lowest since late June, but the common macro backdrop of a strong dollar and expectations of further Fed tightening hasn't disappeared.
The Silver Institute expects data centers alone to account for over 10% of electrical and electronics silver demand next year, giving the metal direct exposure to the AI infrastructure boom.
Recent price action offers circumstantial support for this idea: when Anthropic CEO Dario Amodei's warnings cooled enthusiasm toward the theme, AI-related equities pulled back and the gold/silver ratio rebounded, with silver underperforming gold.