Silver Steady Near Record High On Rate-Cut Bets And Tight Supply
Investors are wagering that a new Federal Reserve chair and the release of delayed US economic data this month will support President Donald Trump’s calls for monetary easing.
Silver steadied near a record after rallying about 17% over the previous seven sessions as traders piled into bets for lower interest rates, while the market faced ongoing supply tightness. Gold was flat.
Investors are wagering that a new Federal Reserve chair and the release of delayed US economic data this month will support President Donald Trump’s calls for monetary easing. The recent gains in precious metals reflect the potential for cuts to gather pace after Jerome Powell’s term ends in May.
In the near term, investors are pricing in a cut at the Fed’s meeting this month. Lower rates tend to benefit gold and silver as they do not yield interest.
Silver has also been supported by a wave of speculative money betting on supply tightness. A record volume of the metal flowed into London last month, putting pressure on other hubs. Inventories in warehouses linked to the Shanghai Futures Exchange recently shrunk to the lowest in a decade.
The white metal was steady at $58.47 an ounce as of 8:11 a.m. Singapore time after hitting an all-time high of $58.84 on Monday. Gold was flat at $4,208.54 an ounce after a two-day decline. Platinum and palladium dipped.
