Silver surges past $40 for first time since 2011 on Fed rate cut expectations

[Eight common precoius Bullion Bars arranged into prism]
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* Silver prices climbed above $40 an ounce on Monday for the first time in over a decade, driven by growing expectations of an interest rate cut this month by the U.S. Federal Reserve.
* Spot silver (XAGUSD:CUR [https://seekingalpha.com/symbol/XAGUSD:CUR]) rose as much as 1.8% to $40.41, pushing year-to-date gains above 40%. The rally mirrors upward trends in other precious metals, including gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) +0.8%, platinum (XPTUSD:CUR [https://seekingalpha.com/symbol/XPTUSD:CUR]) +1.0%, and palladium (XPDUSD:CUR [https://seekingalpha.com/symbol/XPDUSD:CUR]) +1.8%.
* Lower interest rates often boost gold’s appeal, as the metal’s lack of yield becomes less of a disadvantage when borrowing costs are low.
* Investors have piled into exchange-traded funds backed by silver. Holdings expanded for a seventh consecutive month in August — the longest run of inflows since 2020, _Bloomberg_ reported. That’s drawn down the stockpile of freely available metal in London, leading to persistent tightness in the market.
* According to industry group the Silver Institute, the market is forecast to record another significant deficit for the fifth consecutive year in 2025.

MORE ON ISHARES SILVER TRUST ETF, SILVER SPOT PRICE

* Goehring & Rozencwajg Natural Resource Market Q2 2025 Commentary [https://seekingalpha.com/article/4818037-goehring-and-rozencwajg-natural-resource-market-q2-2025-commentary]
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* Fed turmoil and governance risks fuel demand for gold and silver, Saxo Bank says [https://seekingalpha.com/news/4489060-fed-turmoil-and-governance-risks-fuel-demand-for-gold-and-silver-saxo-bank-says]
* HSBC raises silver price forecast as gold strength exerts 'gravitational pull' [https://seekingalpha.com/news/4484266-hsbc-raises-silver-price-forecast-as-gold-strength-exerts-gravitational-pull]