The price of spot silver in New York broke through the $60 per ounce mark on the 9th, and briefly surged to nearly $61.5 per ounce in early trading on the 10th, setting a new all-time high. The market generally bets that the Federal Reserve will cut interest rates after this policy meeting, while persistent silver supply shortages have also fueled the price rally.
Silver has more than doubled in price this year, far outpacing gold’s gain of roughly 60%. This trend began with a severe supply squeeze in the London market last October. Although some metal later flowed into London vaults to ease the situation, lending costs remain high, reflecting ongoing tight supply. Inventories in places like China have fallen to a ten-year low, further intensifying the supply-demand imbalance.
In addition, large amounts of capital have flowed into silver exchange-traded funds (ETFs), with last week's inflows hitting a single-week high since July, indicating investors are optimistic about the market outlook.
The market is also closely watching the future direction of the Federal Reserve’s monetary policy. If the Fed sends more signals of rate cuts, it could provide additional support to silver and other non-yielding precious metals.
As of 11:15 am Malaysian time on Wednesday, New York metals market data showed silver priced at $61 per ounce, up $2.96 or 5.1%, while gold prices remained steady at $4,213.12 per ounce, up $24.24 or 0.58%.