Silver Prices Surge to Record High as Investors Rush to Safe Havens
Silver prices surged to a fresh record high near $117 per ounce on Thursday, extending their year-to-date rally beyond 60% as investors continued to seek safe-haven assets amid ongoing economic and geopolitical uncertainty.
Demand for precious metals remained firm even after the Federal Reserve kept interest rates unchanged. While U.S. policymakers pointed to resilient economic growth and persistent inflation, they provided limited guidance on the timing of potential rate cuts, supporting continued investor interest in silver.
The rally in silver persisted despite a rebound in the U.S. dollar, highlighting strong hedging demand against currency volatility. Elevated global risks, including Middle East tensions, global trade frictions, and renewed protectionist rhetoric ahead of the U.S. election, have fueled concerns over possible tariffs, supply-chain disruptions, and renewed inflationary pressures.
Market sentiment was also pressured by fears of a potential U.S. government shutdown, which could delay the release of key economic data and add further uncertainty to financial markets.
On the supply-demand front, robust industrial demand from renewable energy and electronics sectors continued to tighten silver supply. This structural demand has reinforced silver’s upward momentum, allowing prices to remain supported despite the Federal Reserve’s cautious policy stance.
