Silver Hits Record High Amid Geopolitical Tensions, Fed Rate Cut Hopes; Gold Also Rises

• Silver surged to a record high of $67.5519 per ounce, with gold also rising, driven by escalating international tensions and expectations of Federal Reserve rate cuts.
• Geopolitical unrest, including the US tightening its oil embargo on Venezuela and Ukraine attacking a Russian oil tanker, has heightened the appeal of precious metals.
• Speculative inflows and persistent supply constraints have boosted silver, while gold reached $4,365 an ounce, just $20 shy of its all-time high.
• Traders now anticipate two Fed rate cuts in 2026, benefiting non-interest-yielding assets like gold and silver from looser monetary policy.
• Both gold and silver are poised for their largest yearly gains since 1979, with silver more than doubling and gold climbing by approximately two-thirds, fueled by central bank purchases and ETF inflows.

Why It Matters: Geopolitical instability and Fed rate cut expectations are fueling record surges in silver and gold prices.