Spot Silver Hits Fresh Record After Surpassing October Peak

GC=F +0.82% SI=F +3.96%

(Bloomberg) -- Silver jumped to a record, surpassing a peak set during a historic squeeze in the London market in October.

Spot prices rose as much as 2.6% to above $54.76 an ounce. The white metal has been supported by rising hopes of a Federal Reserve interest-rate cut in December, inflows into bullion-backed exchange-traded funds and ongoing supply tightness. Friday saw erratic price moves and thin liquidity in both gold and silver, after an hours-long halt to trading in futures on the CME’s Comex Exchange.

Most Read from Bloomberg

• Europe’s Largest Capital Without a Subway Is Finally Getting One

• Bikeshare Shouldn’t Kick Tourists to the Curb

• DC Mayor Bowser Won’t Seek Reelection in 2026

There was a severe supply shortage in the dominant silver trading hub in London in October, which sent prices soaring above levels in Shanghai and New York. While the arrival of nearly 54 million troy ounces has eased that squeeze, the market still remains markedly tight with the cost of borrowing the metal over one month hovering well above its normal level.

The flows into the London market have now put pressure on other hubs, including in China. Silver inventories in warehouses linked to the Shanghai Futures Exchange recently hit their lowest level since 2015, while Shanghai Gold Exchange volumes are back to the smallest in more than nine years, according to bourse and brokerage data.

Traders are also monitoring any potential tariff on silver after the precious metal was added to the US Geological Survey list of critical minerals in November. While 75 million ounces have left the vaults of the Comex futures exchange in New York since early October, fears of a sudden premium for US silver have caused some traders to hesitate before shipping metal out of the country.

--With assistance from Sybilla Gross.

Most Read from Bloomberg Businessweek

• Pulte’s Move to Fix Credit Scores Is Bad News for Homebuyers

• The AI Industry Is Built on a Big Unproven Assumption

• Target Needs More Than a Vibe Shift to Turn Its Business Around

• The Dirty Secret of Biodegradable Plastic

• Permabull Tom Lee Sees Bitcoin as High as $200,000 by January’s End

©2025 Bloomberg L.P.