On December 9, silver prices on the spot market surged 3%, reaching a historic high of $60.24 per ounce. Gold also advanced, climbing 0.4% to $4,235.90 per ounce.
The rise in precious metals is being driven by expectations that the US Federal Reserve will lower its benchmark interest rate by 25 basis points at the conclusion of its policy meeting on December 10, Caliber.Az reports per foreign media.
Futures markets currently price the probability of such a cut at 89.6%, according to CME FedWatch data.
If the forecast materialises, it will mark the Fed’s third consecutive rate reduction.
The gold-to-silver ratio has also narrowed significantly, with one ounce of gold now equivalent to 71 ounces of silver, down from 82 ounces in October.
The silver-to-gold ratio of around 70 is close to the average over the past two decades, though historically it has fallen as low as 40.
By Aghakazim Guliyev
