Silver prices hit record highs influenced by expectations of interest rate cuts and geopolitical tensions.

Due to escalating geopolitical tensions and market expectations that the Fed will further reduce interest rates next year, the price of silver has risen to record highs, and the price of gold has also slightly increased. The price of silver rose by more than 0.5% at one point, reaching $67.5519 per ounce. Supported by speculative fund inflows and continued supply tightness following the historic short squeeze in October, the price of silver has strengthened. The spot price of gold is close to $4345 per ounce, less than $40 away from its all-time high, after rising for two consecutive weeks. A series of economic data released last week did not provide a clearer economic outlook, with traders betting that the Fed will cut interest rates twice in 2026. Typically, falling interest rates are beneficial for non-interest-bearing precious metals. Geopolitical tensions have also increased the safe-haven appeal of precious metals. The U.S. has imposed stricter oil sanctions on Venezuela, increasing pressure on the Maduro government; meanwhile, Ukraine has attacked an oil tanker belonging to Russia's shadow fleet for the first time in the Mediterranean.