Silver price soars past $60 for new record

Silver notched another record high on Tuesday as the precious metal continues to attract bids amid concerns over a market deficit.

Spot silver rose as much as 3.6% to a new peak of $60.46 per ounce, keeping the momentum of a record-breaking that has lasted several weeks.

Driving the surge was an unprecedented supply crunch after a historic squeeze hit the London market in October. Bloomberg data shows that Chinese inventories are now hovering at their lowest in a decade.

Also behind the move was the expectation of a US interest rate cut this week, which would be positive for safe-haven assets such as gold and, by extension, silver.

The white metal “is getting a bid this morning alongside gold ahead of the Federal Reserve meeting, with the market pricing in near-certainty of a 25 basis point cut,” said Trevor Yates, a senior investment analyst at Global X ETFs.

With Tuesday’s rally, which takes silver past the $60-an-ounce mark for the first time ever, the metal has now doubled in value this year, even surpassing the 60% gain seen in gold.

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