Silver’s Perfect Storm: Supply Crunch and Rate Cuts Fuel Rally

Silver prices are surging to new heights, propelled by a powerful convergence of market forces that suggest this rally has substantial staying power. Unlike previous short-term spikes, current momentum is driven by deep structural shifts in both physical availability and monetary policy expectations.

Recent weakness in U.S. employment data has significantly increased market expectations for Federal Reserve rate cuts, with traders now pricing in a high probability of reductions as early as December. This development substantially enhances silver’s appeal as a non-yielding asset, attracting fresh speculative capital to the market.

The ongoing uncertainty surrounding potential U.S. government shutdowns further amplifies the flight to safe-haven assets. Read more...