Silver prices hit a new record high after the Fed cut interest rates.

Silver prices surged after the Fed lowered interest rates.

The silver market surged after the US Federal Reserve lowered interest rates, pushing the spot price of silver to a record high of $61.85 per ounce. Since the beginning of the year, the metal has risen by 113%, far outpacing the increase in gold prices.

The Fed lowered interest rates in a highly debated vote and paused further cuts pending more data on inflation and the labor market. This policy shift made non-yielding assets like gold and silver more attractive to investors.

Silver prices hit a new record high after the Fed cut interest rates.

According to independent analyst Tai Wong, traders reacted positively to the message from the Fed, thereby creating new momentum for the metals market. Fed Chairman Jerome Powell continued to state a cautious stance and has not yet given direction for the next interest rate adjustment.

In this context, silver became the focal point of investment flows as its price surged and its appeal grew stronger. The rapid rise in silver prices was driven by a combination of macroeconomic factors, strong industrial demand, and sharply declining inventories.

Strong appeal from industrial demand and limited supply.

Silver prices benefited significantly from high demand in manufacturing and from the US designation of silver as a vital mineral. A supply cut in October created a sharp squeeze, helping prices accelerate their rise.

SP Angel believes that silver's superiority also stems from speculative capital flowing into an asset with higher leverage than gold. The scarcity of physical silver, especially in China – where silver inventories are at their lowest in 10 years – continues to bolster the upward trend.

Inflows into silver-based ETFs surged last week, reaching their highest level since July. Call option trading volume also jumped, mirroring the short squeeze the market experienced, suggesting investors are betting on silver prices continuing to reach new highs.

Forecast of future silver prices

According to BNP Paribas expert David Wilson, the market has risen by about 20% in just three weeks, so a correction is possible. However, the current euphoric sentiment makes a sharp decline unlikely to happen immediately.

Some investors are even discussing a target of $100 per ounce, reflecting optimistic, albeit speculative, expectations. With money still flowing into the market, the prospect of a silver price increase remains strong.

The market is also monitoring the possibility of the US imposing tariffs on silver after the metal was added to the list of essential minerals. Maintaining domestic supply keeps Comex silver levels high, continuing to impact the global market.

Source: https://baonghean.vn/gia-bac-lap-ky-luc-moi-sau-khi-fed-giam-lai-suat-10314836.html