By Kimberley Kao

Asian mining stocks rose on Monday, tracking a rally in silver that briefly pushed prices above $80 a troy ounce.

In Australia, Sun Silver and Silver Mines surged 14% and 18%, respectively. Japan's Toho Zinc jumped 16%, while Korea Zinc gained 8.2%. Shares of Hunan Silver rose 7.2%.

"Industrial demand--particularly linked to AI infrastructure and clean energy--is no longer a marginal story; it is becoming the backbone of silver consumption," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

The surge in silver prices has significantly improved sentiment in the sector, and renewed investor interest can be seen in miners, refiners and companies with silver exposure in markets like China, Japan and South Korea, Sachdeva said.

The rally also potentially indicates "short-term safe-haven rotation among investors seeking alternatives within the precious metals complex", said Oriano Lizza, sales trader at CMC Markets Singapore.

Spot silver traded sharply higher in the session, hitting a record before retreating more than 5%, which analysts said was likely due to profit-taking.

"At these levels, profit-taking, stretched momentum indicators, and thinner year-end liquidity tend to exaggerate intraday volatility," Sachdeva said.

The tight physical market and speculative participation "have exaggerated price swings, explaining both the sharp move above $80 and the subsequent pullback," said Ahmad Assiri, research strategist at Pepperstone. He added that signs of investor concern are growing as inflated prices increasingly reflect "speculative enthusiasm."

Analysts said silver prices could hit $100 in the medium term, supported by expectations of further U.S. monetary policy easing, a weakening U.S. dollar and global uncertainties. However, it is an asset that often sees elevated volatility, which could be worsened by profit-taking.

Silver's gains signal "a clear manifestation of a new phase of compounded anxiety dominating global markets," driven by escalating geopolitical tensions and mixed economic indicators, said Rania Gule, senior market analyst at XS.com.

"For investors, this is no longer just a precious metal trade--it's a high-octane intersection of macro, technology, and geopolitics," Phillip Nova's Sachdeva said.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

December 29, 2025 05:08 ET (10:08 GMT)

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