constraints and expectations of U.S. interest rate cuts drive renewed demand for the precious metal.
On December 9 (local time), spot silver climbed 3.6% to $60.46 per ounce, marking a continuation of nearly two months of gains. While gold has risen roughly 60% year-to-date, silver has outpaced it with a 70% increase over the same period.
According to Mining.com, the recent surge is largely attributed to lingering supply shortages following unprecedented market tightening in London last October. The outlet noted that global silver supply remains tight, with Chinese inventories at a ten-year low.
Market watchers also point to expectations of a potential interest rate cut by the U.S. Federal Reserve this week, which could boost silver alongside gold and other precious metals.
“Investors are piling into silver ahead of the Fed meeting, along with gold,” said Trevor Yates, senior ETF investment analyst at Global X. “The market is almost fully pricing in a 0.25 percentage point rate cut.”
The silver market has faced additional volatility recently. Late last month, trading was temporarily halted on the New York Commodity Exchange (COMEX), causing liquidity to drop sharply.
Reduced trading volumes during the year-end holiday season and decreased over-the-counter silver activity in London have further amplified price swings.
