FX.co ★ Silver Set for Strong Weekly Advance

Silver reached unprecedented levels, surpassing $54 per ounce on Friday, poised to achieve an approximate 8% gain for the week. This surge was fueled by a tightening global supply and a robust demand for safe-haven assets. The market faced turbulence following disclosures from two US regional banks revealing loan issues linked to alleged fraud, which intensified concerns about widespread credit market stress. Additionally, escalating trade tensions between the US and China, the ongoing US government shutdown, and rising expectations for further interest rate cuts by the Federal Reserve increased the allure of precious metals. Geopolitical risks and worries over burgeoning government expenditure and debt further contributed to safe-haven inflows. Moreover, silver saw a rally due to an extraordinary supply squeeze in London, where a scarcity of liquidity triggered a global quest for the metal. Increased demand from India has added more pressure on supply, leading several mutual fund companies to halt inflows into their silver ETF fund-of-fund offerings.