Silver prices surged to a fresh all-time high, driven by growing expectations of global interest rate cuts, heightened geopolitical uncertainty, and sustained speculative buying in the metal.
The rally in silver has been underpinned by strong investor interest, with traders positioning for easier monetary policy across major economies. Lower interest rates typically boost demand for non-yielding assets like precious metals, making silver an attractive hedge.
Speculative Inflows and Supply Tightness Support Silver
Silver has also benefited from robust speculative inflows, following a historic short squeeze witnessed in October, which exposed tight physical supply conditions in the market. Lingering supply constraints have continued to support prices, even as demand from industrial sectors such as electronics, renewable energy, and electric vehicles remains firm.
Geopolitical Risks Add to Safe-Haven Demand
Ongoing geopolitical tensions have further lifted safe-haven demand for silver, alongside gold. With uncertainty surrounding global growth, trade relations, and regional conflicts, investors are increasingly turning to precious metals to protect portfolios against volatility.
With a combination of rate-cut expectations, supply-side pressures, and geopolitical risks, silver’s momentum remains strong, keeping the metal firmly in focus for commodity and currency market participants.
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