Silver prices exceed $40 for the first time since 2011: what drives the market.

Silver and gold prices reach new heights

According to inkorr.com: Today, September 1st, the price of silver has exceeded $40 per ounce for the first time since 2011, while the price of gold has approached its historical highs, according to Bloomberg.

According to the agency's data, the rise in precious metal prices is linked to expectations of interest rate cuts by the US Federal Reserve and the weakening of the dollar. The American currency was trading at its lowest level since July 28 against other currencies, reducing the cost of precious metals for foreign buyers.

To date, spot silver prices have increased by 2.6%, reaching $40.76 per ounce, which represents an annual increase of approximately 40%.

At the same time, the price of gold rose by 1.2%, remaining slightly below its April record, when it exceeded $3500 per ounce.

'The price of silver is rising in response to expectations of lower rates, while limited supply in the market helps maintain the trend of growth,' says KCM Trade's chief market analyst Tim Waterer.

According to Bloomberg, over the past three years, the prices of gold and silver have doubled, which is related to increased risks in geopolitics, business, and global trade.

Additionally, silver has outperformed gold in its growth since the beginning of the year, as investors actively invested in silver-backed exchange-traded funds (ETFs). In August, investment volumes in silver ETFs increased for the seventh consecutive month.

'The Fed's rate cut, the weakening of the US dollar, the rise in ETF capital, and the improvement of the import situation from India are expected to support gold and silver,' comment Morgan Stanley analysts Amy Hauer and Martijn Rats in an email.

Experts are confident that gold is expected to rise further by approximately 10%, while silver will remain at the same level with potential exceeding.

Precious metals have also increased in price due to fears of potential US tariffs, as last week silver was included in the list of key minerals, which also includes palladium.

As of 11:37 London time, the spot price of gold rose by 0.7% to $3471.04 per ounce, marking the fifth consecutive day of growth. Silver increased by 2.3%, palladium by 1.7%, and platinum by 1.8%.

Thus, the increase in precious metal prices reflects changes in the market and political situation that affect the demand and supply of these assets. Investors continue to seek refuge in assets that can provide stability in conditions of economic instability.