FX.co ★ Silver Hovers Near All-Time Highs

Silver rose above $52 per ounce on Wednesday, maintaining levels near the record highs reached in the previous session due to a global supply shortage that triggered an unprecedented surge. The scarcity was particularly evident in the London market, where a short squeeze caused lease rates to escalate by over 30% on Friday, pushing rollover costs for short positions to unsustainable heights. Increased demand from India has further strained the supply, leading several mutual fund companies to halt inflows into their silver ETF fund-of-fund schemes. Additionally, dovish comments from Federal Reserve Chair Jerome Powell, highlighting labor market weaknesses, have strengthened expectations of more US interest rate cuts, thereby enhancing the appeal of precious metals. On the geopolitical landscape, tensions intensified after President Trump threatened to impose a cooking oil embargo on Beijing, in retaliation for China's boycott of US soybeans.