Silver climbs to new record

Silver climbed more than 3% to above $69 per ounce on Monday, reaching a new record, driven by expectations of further Federal Reserve rate cuts and escalating geopolitical tensions.

Recent US data point to moderating inflation and a softer labor market, giving the Fed more scope to ease policy, with markets pricing in two additional rate reductions next year. Lower interest rates tend to support non-yielding metals.

Geopolitical developments, including intensified US sanctions on Venezuela and Ukraine’s attack on a Russian-controlled oil tanker in the Mediterranean, have further reinforced silver’s role as a safe-haven asset.

On the industrial side, demand remains robust, supported by growth in the solar, electric vehicle, and data center sectors, underpinning the metal’s long-term fundamentals.

The precious metal is on track for an impressive gain of nearly 140% in 2025.