Silver Hits Record High on Supply, Demand Boost

Silver prices surged to a record high on Monday, doubling in value this year and outpacing gold's gains, as investors bet on tightening supply, rising industrial demand and impending U.S. interest rate cuts. The precious metal climbed as high as $58.83 per ounce before easing slightly, reflecting a more than 80 percent increase since January amid global market optimism.

The rally marked silver's sixth consecutive day of gains, with prices briefly touching $57.86 before retreating about 1.8 percent to $56.96 an ounce by Tuesday morning in Singapore trading. Gold, meanwhile, reached a six-week high above $4,240 per ounce, up roughly 60 percent for the year, though it edged down 0.3 percent to $4,218.35. Traders attributed the momentum to expectations of a Federal Reserve rate cut at its December 10 meeting, with markets pricing in an 87 percent probability of a 25 basis-point reduction. Recent soft U.S. economic data, including labor market weakness, and dovish comments from Fed officials like Governor Christopher Waller and New York Fed President John Williams have bolstered these forecasts. The dollar's slide to a two-week low has also made precious metals more attractive to...