Silver has surged to another all-time high as traders pile into the “devil’s metal” ahead of tonight’s closely watched US interest rate announcement.
After breaking above $60 per ounce for the first time yesterday, silver pushed even higher this morning to around $61.40, extending a powerful rally driven by tightening supply and booming demand.
Analysts say several forces are converging:
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Worsening supply concerns, with global stockpiles thinning
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Accelerating industrial demand, particularly from solar power and electronics
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Heavy investor buying, as traders seek hedges against uncertainty around interest rates, inflation and geopolitical risks
Tony Sycamore, market analyst at IG, explains: Silver’s gains are being driven by deepening structural supply deficits—worsened by falling mine production in major regions and persistently low global inventories—combined with rapidly rising industrial demand from the green-energy transition, especially solar photovoltaics, electric vehicles, and AI-related hardware.
Expectations of imminent US interest rate cuts — which tend to weaken the dollar and boost demand for precious metals — are adding further fuel to silver’s rally.
The Federal Reserve is broadly expected to deliver a quarter-point reduction at tonight’s policy meeting, a move that would lower borrowing costs and strengthen the appeal of non-yielding assets such as silver and gold.
