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Silver scales fresh 14-year peak
AI Summary
- Silver prices reached a new 14-year high, on track to surpass $44 per ounce for the first time since 2011, driven by a decline in the US dollar and increasing demand from retail traders.
- The US dollar index fell on Monday, reflecting expectations of further Federal Reserve interest rate cuts, with investors closely watching Fed officials' comments for clues on monetary policy.
- Retail traders are turning to silver as an undervalued asset to hedge against risks, with the white metal seen as a more optimal choice compared to gold, which is reaching new record highs.
Silver prices rose in the European market on Monday to extend gains for the third consecutive day, recording a new 14-year high, on course to surpass the $44 per ounce barrier for the first time since 2011, supported by the current decline in US dollar levels.
This rally is also supported by accelerating demand from retail traders, as the white metal is considered undervalued compared to gold, which continues to register new record highs.
Price Overview
Silver prices today: Silver rose by 1.6% to $43.79, the highest since September 2011, from the opening level of $43.09, with a low of $43.03.
At Friday’s settlement, silver gained 3.4% in its second consecutive daily rise, amid strong demand for the white metal.
Over the past week, silver rose by 2.15% in its fifth consecutive weekly gain.
The US Dollar
The dollar index fell on Monday by 0.25%, retreating from a two-week high at 97.8 points, reflecting lower levels of the US currency against a basket of major and minor currencies.
Beyond correction and profit-taking, US dollar levels remain under pressure from growing expectations of further Federal Reserve interest rate cuts in the period ahead.
A number of Fed officials are scheduled to speak this week, with Chair Jerome Powell set to deliver remarks on Tuesday, as investors closely monitor their comments for clues on the future path of monetary policy. Market focus is also on the release of US core PCE price data on Friday for indications on the pace of further rate cuts.
Retail Demand
As retail traders search for financial assets to hedge against risks linked to the current shift by global central banks toward more accommodative monetary policies, silver is seen as the optimal and most undervalued choice at present.
The current rally in silver prices reflects growing recognition among retail traders that the white metal remains far from its fair value compared to gold, which continues to post new historic highs.
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