Silver prices traded just below US$53 per ounce on Thursday, again approaching a record high. This increase occurred amid growing market confidence that the US Federal Reserve will cut interest rates further in the near future. Market participants now estimate an 85% chance of a 25 basis point rate cut in December, a sharp increase from just 30% about a week ago, with three more cuts anticipated by the end of 2026.

These dovish expectations have further strengthened following reports that Kevin Hassett, Director of the White House National Economic Council, is a strong candidate for the next Fed chair. Hassett's position is seen as aligned with President Donald Trump's preference for lower interest rates. The prospect of more dovish Fed leadership has increased the appeal of precious metals like silver to global investors.

Since October, silver has repeatedly tested its record highs. Global economic uncertainty, the prospect of lower interest rates, and increasingly tight physical market conditions have boosted demand for silver, both as a hedge and as a speculative instrument. This combination of fundamental factors has kept silver one of the most closely watched commodities by market participants in recent months. (az)

Source: Newsmaker.id