Silver Price Hits $45 as Investors Flee Risk in Equity Markets

Silver Price Surges Amid Economic Uncertainty

Silver prices climbed above $45 an ounce on Thursday, marking the first time since 2011 the metal reached this level. The rally reflects deepening risk-off sentiment as investors exit volatile equity markets in search of safe-haven assets. Spot silver peaked at $45.07 before retreating slightly to $44.70, still posting a 1.8% daily gain.

Year-to-date, the silver price has soared more than 55%, outpacing gold’s performance. Analysts point to a weakening US dollar, robust central bank demand, and growing geopolitical tensions as key drivers. Surging interest in gold and silver ETFs has further fueled price momentum. Global ETF inflows hit a record $10.5 billion in September alone, surpassing $50 billion year-to-date.

Meanwhile, expectations of a sustained interest rate cut cycle by the Federal Reserve are adding tailwinds to the precious metals rally. The Fed’s recent 25-basis-point cut, combined with stretched equity valuations, has put US stock indices under pressure—prompting a capital shift into metals.

Fed Rate Outlook May Continue to Support Silver Price

Thursday’s GDP data injected uncertainty into the Fed’s rate trajectory. A surprisingly strong print could delay further cuts. However, markets remain focused on the upcoming PCE inflation report—the Fed’s preferred inflation gauge. If the data signals softening inflation, analysts say it could strengthen the case for additional cuts this year.

Kotak Securities’ analyst Kaynat Chainwala noted, “Softer inflation could strengthen the case for Fed rate cuts, supporting bullion, with markets pricing two cuts this year.” If that scenario materializes, the silver price may push higher, especially if global ETF demand holds steady or accelerates.

Historically, silver has benefited from both inflation hedging and industrial demand, particularly in electronics and battery materials. Its dual role as both a monetary and industrial metal positions it uniquely during uncertain economic cycles.

SuperMetalPrice Commentary:

Silver’s breakout above $45/oz marks a pivotal psychological and technical milestone for the precious metals market. With gold already hitting record highs, silver is playing catch-up amid macroeconomic shifts. If inflation trends lower and central banks stay dovish, we may see silver push toward $50—especially if industrial demand stays resilient. Investors should monitor ETF flows, inflation reports, and Fed language closely, as all are now primary drivers of near-term silver price action.