Silver Pulls Back From Record High as Investors Await US Economic Data

Silver prices fell on Wednesday, retreating from the previous session’s all-time peak, as traders turned cautious ahead of key U.S. economic reports that could influence the Federal Reserve’s policy path.

The white metal dropped as much as 1.6% in Asian trading, after hitting a record high of $58.9471 per ounce earlier in the week. Market participants are awaiting the release of delayed U.S. jobs and industrial production data later Wednesday for a clearer read on the economy.

Sentiment remains supported by expectations that the Fed will cut interest rates at its December meeting. The outlook for further monetary easing has been reinforced by the likely appointment of a new Fed chair next year who is expected to align with former President Donald Trump’s dovish views, especially after Jerome Powell’s term ends in May. Lower interest rates typically boost demand for non-yielding assets like gold and silver.

Silver has also drawn strong speculative interest due to persistent supply concerns. A record inflow of the metal into London last month has tightened availability elsewhere, with inventories in Shanghai Futures Exchange-linked warehouses recently falling to their lowest in a decade.

Investor appetite remains robust. Holdings in silver-backed exchange-traded funds rose by about 200 metric tons on Tuesday, bringing total holdings to their highest level since 2022.

“Fast-money traders love markets where pullbacks stay shallow because the physical side keeps tightening on every dip,” said Ahmad Assiri, a strategist at Pepperstone Group Ltd.

As of 2:27 p.m. Singapore time, silver was down 0.5% at $58.1520 an ounce. Gold held steady at $4,208.23 after a two-day decline, while platinum and palladium also moved lower. The Bloomberg Dollar Spot Index was little changed.