Silver Reaches Highest Price Since 2012 Amid Central Bank Rate Cuts
Silver prices surged on Thursday, reaching their highest level since December 2012, as they climbed to $32 per ounce, marking a 0.66% increase. Earlier in the day, the precious metal peaked at $32.71. This rise in silver prices is closely linked to the escalating demand for gold, which has also hit record highs, driven by recent cuts in interest rates by major central banks.
Gold Prices Soar to New Heights
Spot gold prices rose by 0.4%, reaching $2,668 per ounce, and hitting an all-time high of $2,685.42 earlier in the day. December gold futures increased by 0.21% to $2,690. With gold prices climbing approximately 29% this year, the cuts in US interest rates have significantly influenced investor behavior, pushing many towards gold as a safe-haven asset. The Federal Reserve's recent decision to lower interest rates by 50 basis points has further fueled this trend, with traders anticipating a 63% chance of another rate cut in November.
Industrial Demand and Investment Trends
Silver has been one of the standout performers among major commodities this year, rising over 36%. This increase is attributed not only to its status as a safe-haven investment but also to its crucial role in industrial applications. As China seeks to stimulate its economy, the potential for increased industrial use of silver is promising. Additionally, there have been signs of recovery in inflows into silver-backed exchange-traded funds (ETFs), indicating a growing interest among investors. Other precious metals also witnessed gains, with platinum up by 2.36% to $1,011.60 and palladium rising by 1.07% to $1,049.
