Silver Climbs to New Highs on Rate-Cut Bets, Supply Tightness

Core Viewpoint - Silver prices are reaching record highs due to expectations of an imminent interest-rate cut by the Federal Reserve and ongoing market tightness [1] Group 1: Market Dynamics - The rally in silver prices is driven by expectations of a 25-basis-point interest rate cut by the Federal Reserve this week [1] - Persistent physical supply constraints are a result of a historic supply squeeze in October, influenced by strong demand from India and silver-backed ETFs [1] Group 2: Inventory and Supply Conditions - Although inventory pressures have eased due to increased shipments boosting London vault stocks, tight conditions in the over-the-counter market continue to keep prices elevated [2] - Tariff-related concerns are also contributing to the elevated prices in the silver market [2]