Silver Stabilizes Above $58 an Ounce Near Record Levels Supported by Supply Shortages and US Rate Cut Expectations

Silver prices stabilized above $58 an ounce on Thursday, moving close to their all-time highs, with an increase of nearly 100% since the beginning of the year due to tightening supply and expectations for deeper interest rate cuts from the Federal Reserve, according to Trading Economics.

Bloomberg data showed that silver-backed ETFs added about 200 tons on Tuesday, bringing total holdings to the highest level since 2022 amid strong demand.

A record volume of silver was also recorded as being shipped to London last month, leading to supply tightness in other centers, while inventories in Shanghai Futures Exchange warehouses fell to their lowest level in a decade.

Meanwhile, a sudden drop in US private sector jobs has heightened concerns about a weak labor market, increasing investor bets on a rate cut from the Federal Reserve next week.

Markets are also considering the possibility that White House economic advisor Kevin Hassett may succeed Jerome Powell as Fed chair in May, which could pave the way for a more accommodative monetary policy at a faster pace.