Silver prices hit record highs: new peak at $60 per ounce
Silver prices rose to a record level on Tuesday, December 9, exceeding $60 per ounce, due to expectations of a rate cut by the U.S. Federal Reserve.
According to Bloomberg data, the cost of silver in the spot market increased by 3%, reaching a new historical high at $60.24 per ounce. At the same time, gold rose by 0.4% to $4235.9 per ounce. The main factor influencing the rise in precious metal prices is investor expectations regarding a possible 25 basis point cut in the U.S. Federal Reserve’s base interest rate after the next meeting, scheduled for December 10.
If expert forecasts are confirmed, this will be the third consecutive rate cut, which will positively affect the precious metals market. Senior market strategist at RJO Futures Bob Haberkorn notes that the market remains strong and may set new records following the Fed’s announcement.
Market conditions for silver have fundamentally changed compared to October, when 82 ounces of silver were required to buy one ounce of gold. Now this ratio stands at 71 ounces of silver to gold.
The rise in precious metal prices occurs against the backdrop of global economic uncertainty, as well as the consequences of the war in Ukraine and Western sanctions. As a result, Russians actively bought gold in 2022, acquiring 282 tons of this metal in the form of bars, coins, and jewelry.
| Metal | Price on December 9, 2023 | Price Change |
|---|---|---|
| Silver | $60.24/ounce | +3% |
| Gold | $4235.9/ounce | +0.4% |
