Silver surged to an all-time high in the global market on Tuesday, while gold prices also rose as traders remained optimistic ahead of the US Federal Reserve’s interest rate decision.
According to a Reuters report, the spot price of gold increased 0.6 percent to $4,211.77 per ounce, with US gold futures for February delivery up 0.4 percent at $4,236.2 per ounce.
The Federal Reserve’s two-day meeting ends on Wednesday, and traders are pricing in an 87.4 percent likelihood of a 25-basis-point cut this week. RJ O Futures Senior Market Strategist Bob Haberkorn said rising silver prices and expectations of a quarter-point rate cut are currently driving gold’s movement.
The US Labour Department’s Job Openings and Labour Turnover Survey showed job openings in October rising to 7.67 million, above the forecast of 7.15 million, signalling a firm labour market. Haberkorn said gold prices did not influence the jobs data and added that silver could exceed $70 and gold could approach $5,000 in the first half of 2026.
Silver, meanwhile, recorded a sharp jump, rising 4.3 percent to $60.74 per ounce, the highest level ever. Fawad Razaqzada of City Index and Forex.com said buying momentum remains strong as people expect demand for silver to grow in the coming years.
A Silver Institute research report projected rising demand for silver from the solar power industry, electric vehicles and their infrastructure, data centres and the artificial intelligence sector through 2030.
Silver’s price rally has been fuelled by limited global supply, declining inventories, expectations of a Federal Reserve rate cut and its recent inclusion on the US critical minerals list. Sprott Asset Management Senior Portfolio Manager Maria Smirnova said metals tend to be volatile but silver prices will continue to rise unless supply increases.
Platinum climbed 2.8 percent to $1,688.39 per ounce, while palladium increased 2.6 percent to $1,503.74.
