Silver prices continue to fluctuate at high levels

On December 11, the silver futures price on the New York Mercantile Exchange once again broke through the $62 per ounce mark after initially surpassing the $60 per ounce threshold. In the domestic market, as of the close on December 11 at 15:00, the main contract for silver on the Shanghai Futures Exchange closed at 14,488 yuan/kg, continuing to rise. Qu Rui, deputy director of the research and development department at Dongfang Jincheng, stated that silver prices will experience high-level fluctuations in the short term. "On one hand, the Federal Reserve's expected 25 basis point rate cut at the December meeting aligns with market expectations, which may lead to profit-taking pressure due to 'expectation fulfillment.' At the same time, the tightness in the spot silver market has pushed the price increase of silver significantly higher than that of gold, which will also lead to adjustment pressure for silver; on the other hand, driven by demand in photovoltaics and new energy, silver supply has been less than demand for five consecutive years, while the growth of mined silver production is limited and global silver inventories are at historically low levels, continuously widening the supply-demand gap, which is favorable for silver prices." (Economic Reference Daily)