Gold Gains as Fed Delivers Expected Cut With Less Hawkish Tilt

Core Viewpoint - Silver prices have surged, breaking above $60 an ounce for the first time, driven by supply tightness and expectations of monetary easing by the US Federal Reserve [1][2]. Group 1: Price Movement and Market Dynamics - Silver rose to a record of $61.6145 an ounce, marking a 1.6% increase, supported by speculation that the US central bank will reduce rates by a quarter-point at its upcoming meeting [2]. - The price of silver has more than doubled this year, significantly outpacing gold's 60% increase, with a notable rally following a historic supply squeeze in October [4]. - Despite easing supply constraints, borrowing rates remain high, indicating ongoing tightness in the market [4]. Group 2: Investor Behavior and Market Sentiment - There has been a significant inflow into silver-backed exchange-traded funds (ETFs), with the highest weekly inflow since July, indicating strong investor interest [5]. - The market sentiment is currently very positive, with discussions about potential prices reaching $100 per ounce, despite some analysts suggesting that prices may be overvalued by about 15% [6][7]. - The presence of retail and speculative investors has contributed to the momentum in silver prices, as noted by market analysts [3].