Silver price breaks record again
10 December 11:03
The price of silver has reached a historic high, exceeding $60 per ounce.
This was reported by "Komersant Ukrainian" with reference to Bloomberg.
On Wednesday, December 10, the price of the white metal rose by 1.3% to a record $61.48 per ounce.
Gold rose slightly to $4,209.62. Platinum and palladium fell.
According to the publication, the rapid growth of silver in recent days was supported by speculative bets that the US central bank will cut the rate by a quarter point at the end of its meeting on December 9-10. Lower borrowing costs are usually a tailwind for unprofitable precious metals.
“Silver has a large retail and speculative base. Once you have growth momentum, it tends to bring in more money,” explained David Wilson, director of commodities strategy at Moody’s.
This year, silver has more than doubled in price and grown faster than gold. Prices spiked after a historic shortage of the metal in October. While this crisis has eased as more metal enters London vaults, borrowing rates remain elevated, indicating a continuing squeeze.
Other markets are now facing supply constraints and Chinese inventories are at a ten-year low.
Growth was also supported by inflows to exchange-traded funds.
The analyst notes that after the price jump of almost 20% over the past three weeks, the market should theoretically move to a correction.
At the same time, he emphasizes that strong positive sentiment and forecasts of silver’s possible rise to $100 could support further upward movement.
