FX.co ★ Silver Hovers Near Record Highs

Silver is trading just shy of $53 per ounce as of Thursday, staying close to unprecedented levels amid increasing expectations for further interest rate reductions by the US Federal Reserve. Current market predictions suggest an approximately 85% likelihood of a 25 basis point rate cut come December—a significant jump from about 30% just a week prior. Additionally, the anticipation is for three more cuts by the end of 2026. These forecasts gained strength following speculation that Kevin Hassett, the Director of the White House National Economic Council, is the primary candidate to become the next Fed chair. This choice is perceived by investors as consistent with President Donald Trump's inclination towards reducing rates. Since October, the price of silver has been testing historic peaks, driven by global economic uncertainties, the potential for further interest rate cuts, and tightening physical supply conditions, all fueling increased demand for this precious metal.