Silver remained above $63 per ounce on Friday, hovering near all-time highs as the latest US Federal Reserve rate cut coincided with tightening physical market conditions. Earlier this week, the Fed delivered a quarter-point cut and signaled a less hawkish outlook than markets had anticipated. Chair Jerome Powell indicated further rate hikes are unlikely, with projections pointing to one additional cut next year and another in 2027. Robust ETF buying and strong retail demand also supported silver, reinforcing forecasts of a market deficit next year. Industrial demand, particularly from solar, electric vehicles, and data center infrastructure, contributed further to price strength. Meanwhile, rising lease rates and borrowing costs for physical silver in London reflected genuine delivery stress rather than purely speculative positioning.
