FX.co ★ Silver Holds Near All-Time Highs

Silver prices remained steady at approximately $58 per ounce on Wednesday, closely approaching record highs and experiencing a significant increase of about 100% since the start of the year. This surge is attributed to a tightening in supply and anticipated further rate cuts by the US Federal Reserve. According to Bloomberg, silver-backed ETFs saw an increase of around 200 tons on Tuesday, pushing total holdings to their highest point since 2022, driven by strong demand. Concurrently, an unprecedented volume of silver was transferred to London last month, causing a squeeze on supplies in other major markets. Additionally, inventories in the Shanghai Futures Exchange warehouses have plummeted to their lowest in a decade. The Federal Reserve is anticipated to cut interest rates by 25 basis points next week, with market expectations also suggesting three more quarter-point reductions anticipated next year.