Silver Prices Soar to New Record Amid U.S. Rate Cut Expectations and Supply Concerns
Silver prices surged to fresh record highs on Tuesday, fueled by growing investor optimism that the U.S. Federal Reserve will reduce interest rates in its upcoming policy meeting, alongside persistent worries over a tightening global supply of the precious metal.
In the New York futures market, silver climbed 4.4% to $60.97 per troy ounce, touching an intraday peak of $61.06. Meanwhile, spot prices rose 3.9% to $60.46 per ounce after reaching $60.50 during the session. These gains have pushed silver’s price increase to nearly 110% year-to-date, outperforming other key precious metals such as gold and platinum.
Market observers attribute the sharp rise partly to anticipation of a Federal Reserve rate cut, which tends to reduce real yields and can increase demand for non-yielding assets like silver. At the same time, concerns about limited supply availability are driving additional upward pressure on prices, as producers face challenges in meeting rising demand amid geopolitical and economic headwinds.
Investor interest in precious metals has notably intensified in recent months, further supporting the rally in silver. This commodity’s strong performance reflects broader market dynamics where safe-haven assets gain appeal amid uncertain financial conditions.
The combination of a dovish monetary policy outlook and constrained supply suggests that silver could continue to attract significant investor attention going forward. Traders and market participants will be closely watching the Federal Reserve’s forthcoming decisions and supply developments to gauge the medium-term trajectory of silver prices.
Published by The Wall Street Journal
Report by Giulia Petroni
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