FX.co ★ Silver Slips from Record High

Silver prices slightly declined to $65.8 per ounce after previously reaching an unprecedented high of $66.175, driven by a 3.8% increase. This shift comes as investors adjusted to softer-than-anticipated U.S. inflation figures. The core Consumer Price Index (CPI) revealed the slowest year-over-year growth since early 2021, consolidating the belief that the Federal Reserve might proceed with reducing interest rates next year. Current market forecasts suggest a 25% likelihood of an interest rate cut in January, with near certainty by April. Geopolitical tensions continue to capture attention, notably the United States' recent actions to suspend sanctioned Venezuelan oil shipments following a tanker seizure and military actions from the previous week, as well as Russian President Vladimir Putin's unwavering territorial demands in Ukraine despite increased U.S. diplomatic efforts. Silver has experienced approximately a 130% increase this year, marking the most significant annual rise since 1979, propelled by a supply shortage. Expectations for market deficits continue through 2026, driven by resurging industrial demand, continued strength in solar applications, and moderate supply growth.