Silver touched its highest price level since 2012 intrasessionally, while gold hit a new record high as expectations of additional rate cuts from the Federal Reserve boosted precious metals.
Silver climbed as much as 2.8% to $32.71 an ounce, extending this year’s gain to 37%. Its advance came amid a broad rally in precious metals, with gold hitting another all-time high.
Silver has been one of the year’s best-performing core commodities as the Fed began its easing cycle last week and the prospect of further rate cuts benefit metals that don’t offer bond-like yields.
Gains were also supported by the possibility of increased industrial use as China moves to stimulate its economy, while flows into silver-traded funds have shown signs of recovery.
Gold hit a record high of $2,685.58 an ounce, surpassing the all-time high it hit in the previous session.
Precious metals traders will analyze Fed Chairman Jerome Powell’s speech, which is scheduled to be broadcast later Thursday at the 10th annual US Treasury Conference. Several policymakers have expressed their intention to make additional — potentially large — interest rate cuts.
US data including the personal consumption expenditure index could provide additional clues on the Fed’s likely easing path.
Silver for immediate delivery traded 2.5% higher at $32.62 an ounce, while gold gained 0.9% to $2,681.77. Silver prices remain well below the all-time high of nearly 50, set in 2011.
Source: OT
#Rate #cut #drives #precious #metals #higher #Silver #gold #hit #record #highs
