Silver: A Surge of Nearly 149% Since January

Silver has experienced a remarkable increase of nearly 149% since the beginning of the year, fueled by a favorable macroeconomic environment. This environment is characterized by expectations of monetary easing in the United States and persistent geopolitical tensions, which enhance the appeal of safe-haven assets. Currently, traders are assessing the likelihood of two interest rate cuts next year, as mixed economic indicators have heightened expectations for easing by the Federal Reserve. Although the GDP grew at a robust annualized rate of 4.3% in the third quarter, a decline in consumer confidence in December and unchanged factory output in November have contributed to the belief that monetary policy may be relaxed in the coming months. Geopolitical tensions have also supported the rally in silver prices. Last week, U.S. President Donald Trump ordered a blockade of sanctioned Venezuelan oil tankers, affecting some unauthorized vessels as well. The surge in silver prices can be attributed to a combination of factors, including a structural supply deficit, strong industrial demand, and its recent designation as a critical mineral in the United States.