Silver prices are currently trading just below fifty-three dollars an ounce, supported by strong expectations that the Federal Reserve will lower interest rates in December. Financial markets are now pricing in an 85 percent likelihood of a rate cut, reflecting growing confidence that monetary easing is imminent. This outlook has strengthened demand for silver, particularly as physical supply remains tight and the metal trades close to its historical peaks.

Market sentiment has also been influenced by developments surrounding Federal Reserve leadership. Kevin Hassett has emerged as one of the leading contenders to replace Jerome Powell as Fed Chair, reinforcing expectations of a more dovish policy stance. His alignment with the administration’s preference for lower interest rates has added further momentum to precious metals, especially silver, which tends to benefit in low-rate environments due to its non-yielding nature.

Since October, silver has been on a steady upward trajectory, approaching its all-time high. The rally has been driven by a combination of global economic uncertainty, persistent expectations of continued rate cuts extending into 2026, and supportive monetary conditions. These elements have kept investor appetite strong, particularly as the dollar weakens and Treasury yields trend lower.

At the same time, tightening physical supply conditions in the silver market have intensified the upward pressure on prices. The combination of strong investment demand, anticipations of continued policy easing, and structural supply constraints has positioned silver near its historic highs, reinforcing its strength despite broader market volatility.