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Silver Hits Fresh Record Above $62 as Fed-Cut Bets and Tight Supply Drive Rally

Rate-cut expectations are propelling new highs for a market contending with tight supply.

Overview

  • Spot silver touched about $62.6 an ounce after clearing $61 for the first time this week, extending a year-to-date gain of more than 100%.
  • Markets price roughly an 87%–90% chance of a 25 bp Fed cut today, with traders focused on guidance that could trigger a buy-the-rumor, sell-the-fact pullback.
  • Physical indicators remain tight, with elevated borrowing rates and Chinese inventories near decade lows after an October squeeze that strained London supplies.
  • Investor flows are strong, with silver ETFs adding 324 tonnes in a week and options activity surging, even as some analysts warn positioning looks overextended.
  • India’s prices leapt, with Delhi retail levels reported at Rs 1.92 lakh/kg after a Rs 11,500 single-day jump and MCX futures near Rs 1.92 lakh on strong demand.