FX.co ★ Silver Climbs to New Record

On Monday, silver surged over 3% to surpass $69 per ounce, setting a new record high. This rise is largely attributed to anticipated further rate cuts by the Federal Reserve and escalating geopolitical tensions. Recent data from the U.S. indicates easing inflation and a softening labor market, which could provide the Fed with more flexibility to reduce rates. The market currently anticipates two additional rate cuts next year. Typically, lower interest rates bolster non-yielding metals like silver. Geopolitical events, including increased U.S. sanctions on Venezuela and Ukraine’s assault on a Russian-controlled oil tanker in the Mediterranean, have strengthened silver's status as a safe-haven investment. On the industrial side, demand remains strong, fueled by expansion in the solar, electric vehicle, and data center sectors, thereby supporting silver's long-term fundamentals. The precious metal is projected to achieve an impressive gain of nearly 140% by 2025.