Silver has seen a notable surge recently, breaking through the $31 per ounce mark, with the latest closing price at $31.51 on September 20, 2024. This is a significant pickup from where it closed just a week ago, showcasing strength amid shifting economic indicators. The recent uptick is mainly attributed to the U.S. Federal Reserve’s unexpected 50 basis point rate cut earlier in the week, a bold move aimed at revitalizing the economy which initially pressured the dollar and, by extension, offered support to commodity prices like silver.
In comparison to the previous months leading up to this point, silver has notably fluctuated. For instance, in mid-August, it hovered around $29 per ounce, indicating a steady climb prior to the Fed’s announcement. Looking back further, silver had closed around $24 at the end of December 2023, and it took several months of uneven trading before gaining momentum this September, jumping to levels we haven’t seen since July and creating quite a buzz in the market.
Despite some disappointment from traders after China decided to keep their lending rates unchanged, the overall sentiment remains optimistic as market participants anticipate additional stimulus measures from Chinese authorities after weak economic performance in August. As it stands, silver’s rise over the past two months emphasizes current market dynamics and the influence of policy changes rather than a long-term upward trend that’s detached from its historical performance.
