Metals Rally as Inflation Data Fuels Rate Cut Bets
Silver surged 8.1% this week to a record $69.6/oz, driven by relentless investor demand and supply constraints. Gold followed suit, rising 0.3% to $4,346.69/oz amid growing speculation of Federal Reserve rate cuts in 2024. The softer-than-expected November inflation reading (2.7% vs. 3.1% forecast) and a rising unemployment rate (4.6%) cemented the narrative.
Platinum and palladium joined the rally, gaining 3.2% and 0.4% respectively. "ETF flows dominate the silver trade, with retail speculation adding fuel," noted Phillip Streible of Blue Line Futures. The metals market now watches for confirmation of Fed dovishness as macroeconomic cracks widen.