After trading at about $50 per ounce in late November, silver prices continued to surge on Wednesday, hovering at about $62 per ounce. Compared to the metal’s average price of about $30 at the start of the year, it is a substantial increase.
The price increase comes as it was revealed that the US government is interviewing finalists to succeed Jerome Powell as chair of the Federal Reserve. Additionally, following its meeting later on Wednesday, investors expect the Fed to lower its benchmark rate.
Powell has overseen a slower pace of easing, but the top three contenders for the chair position, including Kevin Hassett, the director of Donald Trump’s National Economic Council, who is reportedly the front-runner, are anticipated to enact more dramatic rate reduction.
This year, the value of the metal has nearly doubled, even outpacing the 60% surge in gold that propelled bullion to all-time highs. In addition, traders want to know if the United States will slap taxes on silver.
The metal was added to the US government’s 2025 Critical Minerals List in early November. This classification is often given to commodities deemed strategically significant to the country’s economy and security. Because of its new status, silver may also be the subject of Section 232 investigations, which were previously used to justify tariffs on steel and aluminum.
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