Silver Price Today: Here’s Why The Commodity Is Drawing Investor Attention

Silver prices continued to rise as demand for the precious metal outpaced its supply, while increasing hopes of an interest rate cut from the Federal Reserve have boosted investor sentiment for precious metals.

At the time of writing, silver futures maturing in December were up nearly 2%, while gold futures for the same month were up 0.9%.

“The previous significant undervaluation of Silver relative to Gold is likely to have attracted investors to the Silver market, which, based on forecasts by the Silver Institute and Metals Focus, is expected to be undersupplied for the fifth consecutive year,” said Commerzbank in a recent note, according to a report by FXStreet.

Spot silver prices were down 1.19% at the time of writing. Over the past month, the precious metal has appreciated nearly 9%, while its one-year returns stood at over 44%.

According to a Bloomberg report citing a Silver Institute note, silver supply is expected to be in deficit compared to the demand for the metal for the fifth consecutive year. Silver is utilized in various industrial applications, including electronics, solar panels, and data centers. Analysts at the CME Group underscored in a recent note that this “tightness” in the market has boosted silver prices to levels not seen in over a decade.

Ahead of the Federal Open Market Committee’s (FOMC), the CME FedWatch tool points to 89.8% probability of the Fed cutting interest rates by 25 basis points.

Meanwhile, U.S. equities declined in Tuesday’s opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.93%, while the Invesco QQQ Trust (QQQ) declined 0.98%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

The iShares Silver Trust ETF (SLV) was up 1.49% at the time of writing, while the abrdn Physical Silver Shares ETF (SIVR) was up 1.53%.

Also See: Nasdaq Futures Decline As Investors Exercise Caution Ahead Of Jobs Report: NVDA, AVGO, TSLA, NIO Among Stocks To Watch

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