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Silver Record High: Silver extended its powerful rally on Monday, climbing to another record as investors continued to bet on tightening supplies in the global market.
The metal reached an intraday high of $57.86 an ounce, building on a sharp surge that began at the end of last week.
Friday’s nearly 6 percent jump pushed silver to an unprecedented peak and set the stage for six straight days of gains.
The metal has now doubled in value since the start of the year, a pace that has far exceeded gold’s roughly 60 percent rise over the same period.
Gold posted a modest increase on Monday as well, supported by steady demand across the precious metals sector.
A surge of silver shipments into London in October helped ease an intense supply squeeze in the world’s largest trading center.
The record inflow brought some relief to the hub but added new pressure to other markets already grappling with tight supplies.
Stockpiles in warehouses tied to the Shanghai Futures Exchange have dropped to their lowest point in almost a decade.
The one-month borrowing cost for silver also remains elevated, signaling that the strain on global inventories is far from over.
“Shortages caused by the recent squeeze in London continue to weigh on the global market,” said Daniel Hynes, a commodity strategist at ANZ Group Holdings Ltd.
He noted that, with gold’s rally slowing, many investors are now directing their attention toward silver instead.
Both metals have continued to climb as expectations grow that the Federal Reserve will move ahead with an interest-rate cut in December.
Traders are now fully anticipating a quarter-point reduction, encouraged by ongoing softness in the U.S. labor market and a steady stream of dovish remarks from Fed officials in recent days.
The case for easing has also been reinforced by economic data that was delayed during the federal government’s six-week shutdown.
Lower borrowing costs typically bolster non-yielding assets such as gold and silver, adding further support to their recent gains.
President Donald Trump announced Sunday that he has settled on his choice for the next Federal Reserve chair, a candidate widely viewed by investors as likely to support lower interest rates.
The decision added another layer of speculation to a market already focused on the Fed’s next move.
“The gains last week were driven heavily by speculation, with rising momentum pulling in a wave of fast-money players,” said David Wilson, director of commodities strategy at BNP Paribas SA.
He pointed out that the gold-silver ratio has slipped toward 70, a shift that traders are watching closely as silver continues to rise more quickly than gold.
The gold-silver ratio, which shows how many ounces of silver are needed to buy one ounce of gold, remains a closely watched market indicator.
Meanwhile, the difference between silver futures call options, which profit if prices rise, and put options, which profit if prices fall, has surged to its highest level since 2022.
This jump reflects a rising cost for investors looking to capitalize on potential silver price spikes.
Traders are keeping a close eye on silver following its addition to the U.S. Geological Survey’s list of critical minerals last month.
The move has sparked concerns that potential tariffs could push prices higher in the U.S., making some investors hesitant to export the metal.
This could limit supply relief if global markets tighten further. Silver mining stocks rallied sharply on Monday.
In Australia, Sun Silver Ltd. jumped as much as 21%, while Silver Mines Ltd. rose nearly 13%. Hong Kong-listed China Silver Group Ltd. climbed 14% before giving up some of its gains.
Global markets were recalibrating on Monday following a lengthy trading disruption at the Chicago Mercantile Exchange on Friday.
A data-center malfunction had temporarily halted futures and options trading on Comex.
Some metals traders reported resorting to phone calls with brokers and dealers to manage their positions.
By 1:02 p.m. London time, silver was trading higher at $ [price] an ounce, while gold edged up to $ [price] an ounce.
The Bloomberg Dollar Spot Index dipped slightly. Both platinum and palladium saw modest gains.
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