Silver Hits Fresh Record on Supply Tightness, Rate-Cut Hopes

Silver rose to a record, supported by ongoing supply tightness and rising expectations for an interest-rate cut in the US this month.

The white metal traded at more than $57 an ounce, surpassing a previous high struck on Friday when it surged nearly 6%. Markets are fully pricing in a quarter-point rate cut in December on continued weakness in the American labor market and a series of dovish comments by Federal Reserve officials.

Silver has also been supported by renewed concerns of tightness in the global market. Despite a record amount of metal flowing into London to ease a historic squeeze, the cost of borrowing the metal over one month remains elevated. Other hubs are , with silver inventories in warehouses linked to the Shanghai Futures Exchange recently hitting their lowest in nearly a decade, bourse data shows.

Gold was down 0.4% at $4,222.87 an ounce as of 8:31 a.m. Singapore time. The ended Friday 0.1% lower. Silver rose 0.8% to $56.9180 an ounce. Palladium and platinum also gained.