FX.co ★ Silver Pushes New Highs

Silver prices surged beyond $95.5 per ounce, reaching new highs on Thursday, as investors reevaluated the strength of the US economy amidst indications that inflation pressures are under control. The higher-than-expected revision of the third-quarter GDP growth to 4.4% confirmed the robust state of the economy, lowering the immediate need for policy easing. Meanwhile, recent inflation data reflected ongoing disinflation rather than a resurgence of inflation, easing concerns regarding future monetary policy decisions. This scenario mitigated the downward pressure typically associated with robust economic growth, allowing silver prices to climb. Additionally, reduced geopolitical tensions concerning Greenland lessened the immediate demand for safe-haven assets. President Donald Trump retracted tariff threats and opposed using force, although uncertainty persisted due to Denmark's refusal to negotiate and European lawmakers' suspension of the EU-US trade agreement approval process. Silver retains its appeal amid continued physical supply constraints, marking the fourth consecutive year of global supply deficits.