Silver Nears Record, What's Fueling the Precious Metals Rally?
Silver remains stable near its record high after rising about 17% over the past seven sessions. This rally is due to traders expecting lower US interest rates, which typically benefit precious metals. Meanwhile, gold prices remained flat after a two-day decline, reflecting the market's anticipation of new monetary policy direction from the Federal Reserve.
Investors are focusing on the possibility of a rate cut by the new Federal Reserve Chair and US economic data due this month. Lower interest rates make gold and silver more attractive because precious metals do not pay interest. The recent price increase is also fueled by market expectations of monetary easing after Jerome Powell's term ends in May.
In addition to interest rates, tight silver supplies are also supporting the price of this white metal. Silver volumes entering London reached a record last month, while inventories at warehouses linked to the Shanghai Futures Exchange fell to a decade-low. Silver held steady at $58.47 per ounce after hitting a record $58.84, while platinum and palladium prices declined. (az)
Source: Newsmaker.id
