For the First Time Since 2011.. Silver Price Exceeds $40

SadaNews - The price of silver exceeded $40 per ounce for the first time since 2011, fueled by growing expectations of a rate cut by the Federal Reserve this month, which has boosted investor interest in precious metals.

The spot silver price rose by 1.4% to reach $40.2920 per ounce on Monday, increasing its gains since the beginning of this year to more than 40%, in a rising trend that coincided with increases in gold, platinum, and palladium prices. The price of bullion rose by 0.7% at the start of the week, marking its highest level since setting a record in April.

Precious metals benefit from Trump's attacks
Precious metals have benefited from strong investor demand for safe havens amid geopolitical tensions and unstable financial conditions, including U.S. President Donald Trump’s repeated attacks on the Federal Reserve, which have raised concerns about the central bank's independence.

Expectations for the Federal Reserve to lower interest rates at its upcoming monetary policy meeting this month have increased, and the upcoming U.S. non-farm payroll report due on Friday is expected to bolster those expectations. A decline in borrowing costs tends to support precious metals, which do not yield interest.

Silver Supply Shortage Continues
Silver is also valued for its industrial uses in clean energy technologies, including solar panels. Under these conditions, the market is heading towards its fifth consecutive year of recording a supply deficit, according to the sector-engaged group "Silver Institute."

Investors have heavily invested in silver-backed exchange-traded funds. Silver holdings expanded for the seventh consecutive month in August, the longest streak of inflows since 2020. This has led to a decline in the metal's freely available stock in London, contributing to the ongoing supply tightness in the market.