Rate Cut Expectations & Industrial Demand Dominate Silver Prices
Silver prices continued their rally on Wednesday, moving above $52 per troy ounce, their highest level in more than a week. Several quotations show silver trading in the range of $51.8–52.3 per ounce, up around 1–2% intraday, following the strengthening of gold and falling US bond yields.
Fundamentally, the main driver comes from growing confidence that the Federal Reserve will cut interest rates at its December meeting, with the probability in the derivatives market now above 80%. Lower interest rates typically put downward pressure on the US dollar and bond yields, making zero-coupon assets like silver more attractive. A series of weak US data and dovish comments from Fed officials have reinforced expectations that monetary policy will shift to a looser phase.
Beyond interest rates, silver's medium-term fundamentals are also supported by supply and demand. Silver stocks in China fell to their lowest level in almost a decade, while large exports to London recently signaled tight physical supplies in the West. At the same time, industrial demand—particularly for solar panels—and investor interest make silver one of the best-performing metals through 2025, so many analysts still see room for upside, although potential corrections need to be monitored.
Source: Newsmaker.id
