Silver Price Surpasses $66 Amid US Rate-Cut Hopes

Silver Price Rally Driven by US Rate-Cut Speculation

Silver prices surged above $66 per ounce, marking a historic high amid renewed expectations for US interest rate cuts. Spot silver climbed as much as 4% to $66.50 before slightly retreating. Over the past month, silver has gained approximately 25%, fueled by supply concerns and a weaker US labor market. Meanwhile, gold also advanced, reaching around $4,330 per ounce, reflecting safe-haven demand. Analysts, including Marex’s Edward Meir, predict silver could target $70 in the short term.

US labor market data revealed a rise in unemployment to 4.6%, the highest since September 2021. This development strengthens the probability of further Federal Reserve rate cuts in 2026. Following three rate reductions this year, investors now anticipate two additional cuts next year. As a result, non-yielding metals like silver and gold have seen substantial inflows.

Geopolitical Tensions and Market Impact on Silver

Geopolitical factors also contribute to silver’s rally. Escalating US-Venezuela tensions, including a blockade of sanctioned oil tankers, have intensified safe-haven demand. Consequently, both silver and gold attract investors seeking protection against economic and political uncertainties. Silver’s performance, doubling in value this year, outpaces gold’s increase of roughly two-thirds. The combination of rate-cut expectations and geopolitical risks positions silver as a primary investment for risk-averse traders.

Financial institutions and asset managers highlight that safe-haven demand will likely sustain precious-metal momentum through 2026. Moreover, supply limitations, including mining and production constraints, may reinforce upward price trends. Therefore, silver remains strategically significant for portfolios focused on hedging and long-term growth.

SuperMetalPrice Commentary:

Silver’s historic $66 surge demonstrates the metal’s sensitivity to monetary policy and geopolitical risks. Investors should monitor US interest-rate decisions, labor data, and supply constraints closely. With safe-haven demand rising, silver could continue outperforming gold in the near term. Strategic positioning in silver offers hedging benefits, especially as interest rates fluctuate and geopolitical tensions persist.