Spot Silver scaled a fresh record high of $61.61/oz. on Wednesday, as investors braced for the outcome of the Federal Reserve’s two-day policy meeting.
The Fed is widely expected to lower its federal funds rate target range by 25 basis points to 3.50%-3.75% at its December meeting.
The Federal Reserve cut interest rates by 25 basis points to 3.75%-4.00% in October, bringing borrowing costs to their lowest level since 2022.
Fed policy makers highlighted increasing downside risks to employment in recent months, while inflation has remained elevated.
The minutes from the Federal Reserve’s October meeting revealed that interest rates had been lowered even as policy makers cautioned that such a move could risk entrenched inflation and a loss of public trust in the financial institution.
Investors will also be paying close attention to the press conference with Fed Chair Jerome Powell for clues over the timing of future interest rate cuts as well as to the new set of FOMC economic forecasts.
Markets are now pricing in two additional interest rate cuts by the end of 2026.
Lower interest rates tend to reduce the opportunity cost of holding Silver, which pays no interest.
At the same time, silver lease rates, the cost of borrowing physical metal from bullion holders in order to meet delivery obligations, continued surging amid an ongoing supply tightness.
Robust industrial demand also continued to support Silver prices. The white metal plays a key role in solar energy, electronics and broader electrification efforts.
Spot Silver was last up 1.40% on the day to trade at $61.52 per troy ounce.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
