Silver Hits $52 Again: Is the London Squeeze Not Over Yet?
Silver broke through $52/oz again on Wednesday, remaining near its record high after a global supply crunch sparked a major rally. The London market was particularly tight: a short squeeze caused lease rates to spike by more than 30% on Friday, making rollover costs for short positions unreasonable. Indian demand further squeezed supply, leading some mutual funds to suspend inflows into silver ETFs to preserve liquidity.
On the macro front, a dovish tone from Fed Chairman Jerome Powell—who highlighted the weakening labor market—bolstered bets on a US interest rate cut, boosting appetite for the precious metal. Geopolitics also heated up after President Trump threatened a cooking oil embargo against Beijing in response to a Chinese soybean boycott, keeping demand for hedging assets high. The result: the silver rally persisted, although volatility remained high as long as physical liquidity remained unrecovered. (az)
Source: Newsmaker.id