Silver Hits Record $60.74/oz as Gold Gains Ahead of Fed Rate Decision
Dec 9 (Reuters) – Gold advanced on Tuesday as traders awaited the U.S. Federal Reserve’s upcoming interest rate decision, while silver surged to a record $60.74 per ounce amid tight supply conditions.
Spot gold rose 0.6% to $4,211.77 per ounce by 3:21 p.m. ET (2021 GMT), with U.S. gold futures for February delivery settling 0.4% higher at $4,236.20 per ounce.
Meanwhile, spot silver climbed 4.3%, reaching an all-time high of $60.74 per ounce.
The Federal Open Market Committee (FOMC) is scheduled to meet on December 9-10, with traders pricing in an 87.4% chance of a rate cut. Data also showed that U.S. job openings increased slightly in October.
"Investors are expecting strong industrial demand for silver in the coming years, which has pushed prices higher," said Fawad Razaqzada, market analyst at City Index and FOREX.com, noting that buying momentum is currently robust.
According to a research report by the Silver Institute, sectors such as solar energy, electric vehicles and their supporting infrastructure, as well as data centers and artificial intelligence, are set to drive industrial demand for silver through 2030.
Silver prices have also been bolstered by persistently low supplies, declining global inventories, expectations of Federal Reserve rate cuts, and the metal’s recent designation as a U.S. critical mineral.
"Metals are naturally volatile, but unless the deficit is addressed, silver has only one direction to go — and that is up," said Maria Smirnova, senior portfolio manager and chief investment officer at Sprott Asset Management.
On the U.S. policy front, the Federal Reserve concludes its two-day meeting on Wednesday, with traders currently pricing in an 87.4% probability of a 25-basis-point rate cut.
"The recent surge in gold is largely driven by silver’s sharp rise and high expectations for another quarter-point cut," said Bob Haberkorn, senior market strategist at RJO Futures.
Meanwhile, the U.S. Labor Department’s JOLTS report showed job openings rose to 7.67 million in October, surpassing forecasts of 7.15 million and signaling a strong labor market.
Gold has largely ignored the jobs data, Haberkorn noted, adding, "We could see silver surpass $70 an ounce in the first half of 2026, with gold potentially reaching $5,000 an ounce."
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