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Silver passes $47 for the first time in 14 years
AI Summary
- Silver prices hit a 14-year high, passing $47 per ounce for the first time since 2011, driven by a weaker US dollar and increasing demand from retail investors
- The dollar index fell 0.3% on Monday, reflecting ongoing weakness and expectations of interest rate cuts by the Federal Reserve, making dollar-denominated commodities like silver cheaper for holders of other currencies
- Retail investors are turning to silver as an undervalued option compared to gold to hedge against risks associated with loose monetary policy and economic uncertainty
Silver prices rose in the European market on Monday, extending gains for a third consecutive session and hitting a new 14-year high after breaking above $47 per ounce for the first time since 2011, supported by the ongoing decline in the US dollar.
The rally is also being fueled by accelerating demand from retail investors, who view silver as undervalued compared to gold, which continues to reach record highs.
Price Overview
• Silver prices today: The metal climbed 2.45% to $47.19, the highest since May 2011, up from an opening of $46.07, with a session low of $45.95.
• On Friday, silver settled 1.95% higher, its second straight daily gain, after revised US consumer inflation data.
• Last week, silver advanced nearly 7%, marking a sixth consecutive weekly gain amid strong demand for the white metal.
US Dollar
The dollar index fell 0.3% on Monday, extending losses into a second session and retreating from a three-week high of 98.61, reflecting continued weakness of the greenback against major peers.
A weaker dollar makes dollar-denominated commodities cheaper for holders of other currencies. In addition to profit-taking, the dollar remains pressured by the looming risk of a US government shutdown and strong expectations that the Federal Reserve will cut interest rates in October and December.
To reprice these expectations, markets are awaiting a series of key US labor market reports this week along with comments from Fed officials.
Retail Demand
As retail investors search for financial assets to hedge against risks tied to the global shift toward looser monetary policy, silver is emerging as the most attractive, undervalued option compared with gold.
The current surge in silver prices reflects increased recognition among retail traders that the white metal remains significantly undervalued relative to gold, even as the latter continues setting fresh record highs.
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