Spot Silver extended bullish run to a fresh record high of $70.00/oz. on Tuesday, underpinned by expectations of further policy easing by the Federal Reserve and amid ongoing supply deficit, rising industrial demand as well as robust investment demand.
The latest US macro data pointed to moderating inflation and a cooling labor market, giving the Fed more scope to lower rates.
FOMC policy makers signaled just one 25 bps rate cut for next year, while investors continue to expect two rate cuts of 25 basis points each.
The safe-haven allure of the metal has also been heightened by mounting tensions between the US and Venezuela. The US reportedly moved against another vessel near Venezuelan waters following the seizure of two oil tankers this month.
Market players now await the second estimate of US GDP growth for Q3, due later today, for more guidance on the Fed’s monetary easing trajectory.
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 0.70% on the day to trade at $69.54 per troy ounce.
Year-to-date, the metal has surged 142%, while outperforming Gold.
“Both gold and silver continue to attract buying strength. This behavior suggests that $4,500 and $70 are being treated less as hard ceilings and more as reference points within ongoing trends, leaving both metals firmly supported for now and over the holidays,” Ahmad Assiri, research strategist at Pepperstone, was quoted as saying by Reuters.
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