Silver prices near all-time high: Here we decode why
What's the story
Silver prices have surged to nearly an all-time high, bolstered by a major uptick in exchange-traded fund (ETF) inflows. The white metal traded at around $58.50 per ounce, just a dollar shy of its previous session's record peak. Last week alone, silver-backed ETFs saw their total holdings increase by nearly 590 tons, a clear indication that investors are betting on the continuation of this rally.
Market dynamics
Fed rate cut expectations fuel silver's rise
Silver's recent rally has also been fueled by rising expectations that the Federal Reserve will announce an interest rate cut this week. Such a move would favor non-yielding precious metals like silver. The market is still reeling from the effects of a historic short squeeze in London, further contributing to silver's price surge.
Precious metal trends
Gold remains steady amid silver's surge
At the time of writing, silver had gained 0.3% to $58.4875 per ounce, close to its record high of $59.3336 on Friday. Meanwhile, gold remained steady at $4,200.25 per ounce after a nearly 1% decline last week. The Bloomberg Dollar Spot Index was unchanged during this period, while platinum saw gains and palladium remained stable.