Silver is approaching its record high, with Gold also rising, as markets price in further interest rate cuts and declining inventories in China boost momentum, Commerzbank's commodity analyst Barbara Lambrecht notes.
"Precious metal prices have also risen recently, driven by significantly increased expectations for interest rate cuts. While Gold remains more than $200 — or roughly 5% — below its record high, Silver is already within striking distance: At close to $54 per ounce, it is nearly back to its all-time high from mid-October."
"The Gold/Silver ratio has fallen to a new yearly low as a result. In the short term, a further price increase cannot be ruled out if registered Silver inventories in China continue to decline. Furthermore, Silver could continue to advance on Gold’s momentum if optimism over lower interest rates intensifies further."