Topline<\/p>\n
Silver prices rose to a record high Tuesday, surpassing the $60 milestone for the first time as the precious metal has outpaced gold this year amid a global supply squeeze and another expected interest rate cut by the Federal Reserve. <\/p>\n
The price for the precious metal has doubled this year amid a global inventory squeeze. <\/p>\n
dpa\/picture alliance via Getty ImagesKey Facts<\/p>\n
Spot silver rose about 4% over the last day to around $60.82 per troy ounce on New York\u2019s Commodity Exchange as of Tuesday afternoon, while silver futures jumped more than 4% to nearly $61, after earlier hitting an intraday high of $61.06.<\/p>\n
The latest surge in silver prices comes as traders are pricing in 87% odds of the Federal Reserve lowering interest rates by a quarter-point Wednesday, according<\/a> to CME\u2019s FedWatch tool, which would cut rates to between 3.5% and 3.75%\u2014an uptick in precious metal prices often coincides<\/a> with reduced interest rates and a weaker U.S. dollar.<\/p>\n The U.S. dollar index has dropped 8.5% this year, including a 0.5% decline over the last month.<\/p>\n Silver was added<\/a> to the U.S. Geological Survey\u2019s list of critical minerals in November, indicating the metal is \u201cvital\u201d to the U.S. economy and faces potential risks from disrupted supply chains, reportedly<\/a> signaling to investors that silver may face tariffs in the U.S. amid dwindling global inventories.<\/p>\n