Silver Surges Towards $70 as Dollar Weakness and Rate Cut Expectations Boost Demand
Silver prices have surged towards $70 per ounce as the US dollar faces selling pressure. The precious metal's rally is driven by expectations of a potential rate cut by the Federal Reserve and strong industrial demand from sectors like solar panels, electronics, and electric vehicles.
Market participants are pricing in a higher likelihood of a rate cut, which reduces the opportunity cost of holding non-yielding assets like silver. The weaker dollar also makes dollar-denominated commodities more attractive to international buyers, boosting demand.
The last time silver traded near $70 was in 1980, but this rally is fundamentally different and supported by broad-based buying from institutional investors, exchange-traded funds, and central banks diversifying reserves away from the US dollar.