Silver rose above $60 an ounce, as traders priced in impending federal interest rate cuts and tightening supply conditions, reinforcing the metal’s historical trend of outperforming gold during easing cycles, ING commodities experts Ewa Manthey and Warren Patterson noted.
The Fed lowered expectations and supply shortages led to the outperformance of silver
“Silver prices rose above US$60 – a new record high – in Tuesday afternoon trading. This was supported by expectations that the Fed will cut interest rates this week and concerns about supply tightening. Historically, silver has outperformed gold during easing cycles, as lower real yields tend to lift investor allocations and industrial activity.”
“Silver prices have risen about 110% so far this year, outpacing gold. Silver is supported by concerns that the metal could be targeted in future US tariffs after it was added to the US Geological Survey’s list of critical minerals last month. Mined silver production is down about 3% this year, with production constrained by lower ore grades and limited new project development.”
“Looking forward to 2026, we expect silver prices to remain well supported by resilient industrial demand, limited supply growth, and a more favorable macroeconomic environment.”
