Silver Surges Past $70 as Supply Shortfall Drives Price Rally
Silver prices have surpassed $70 per ounce for the first time this year, marking a significant milestone in the precious metal's recent rally. The price of silver surged by 2.9% on Thursday to settle at $70.06, extending its 21% gain over the past month.
The breakout comes as global markets remain uncertain ahead of the Jackson Hole conference, where Fed Chair Kevin Warsh is set to speak. Despite a low probability of a September rate hike, elevated market rates and inflation above the 2% target have kept bond markets on edge.
A persistent supply shortfall in the silver market has contributed to its recent price appreciation. The Silver Institute projects a sixth consecutive deficit year, with an anticipated supply gap of 46.3 million ounces. Institutional investors are taking notice, drawing in funds that would otherwise be invested in short-term trading narratives.