FxNews—Silver prices have climbed to nearly $31 per ounce, reaching a one-week high. This surge is driven by several global economic factors influencing the precious metals market.
- Traders expect the Federal Reserve to cut interest rates.
- Geopolitical tensions in the Middle East are escalating.
- China may announce new economic stimulus measures.
Silver Prices Hit $31 Amid Fed Rate Cuts Expectations
Traders are now betting on a 75% chance that the Federal Reserve will lower interest rates by 25 basis points at its December meeting, up from 59% a week ago.
Dovish comments from a Federal Reserve official have fueled these expectations, increasing interest in silver and other precious metals.
Middle East Tensions and China Stimulus Impact
Ongoing geopolitical tensions in the Middle East also support Silver prices. The Israeli military recently targeted Hezbollah positions in Lebanon, raising regional concerns.
Additionally, speculation that China will announce new stimulus measures during key political meetings this month is boosting demand in the world’s largest metals consumer.