FX.co ★ Silver Scales Fresh All-Time Highs

Silver surpassed the $61 per ounce mark on Wednesday, reaching unprecedented highs as investors turned their attention to an anticipated interest rate cut from the US Federal Reserve and increasingly constrained supply conditions. The market widely anticipates that the Fed will announce its third consecutive 25 basis point rate reduction this year. However, stakeholders will also closely analyze Chair Jerome Powell's statements for insights into the interest rate forecast for 2026. Concurrently, silver lease rates—indicative of the borrowing cost for physical silver from bullion holders to fulfill delivery commitments—are on the rise due to a persistent supply shortage. The demand for silver remains strong, bolstered by its exceptional electrical and thermal conductivity, which plays a crucial role in the technological advancements driving the global economy. Industries such as solar energy, electric vehicles, and their supporting infrastructure, as well as data centers, are anticipated to significantly influence consumption through 2030.