Silver soared past $60 per ounce as traders priced in imminent Fed rate cuts and tightening supply conditions, reinforcing the metal’s historic tendency to outperform Gold during easing cycles, ING's commodity experts Ewa Manthey and Warren Patterson note.

Fed cut expectations and tight supply drive Silver’s outperformance

"Silver prices rallied above $60/z – a fresh record high – in Tuesday’s afternoon trading. This was fuelled by expectations that the Federal Reserve would cut interest rates this week and concerns over tightening supply. Historically, Silver has outperformed Gold during easing cycles, as lower real yields tend to lift both investor allocation and industrial activity."

"Silver prices are up around 110% so far this year, outpacing Gold. Silver is supported by fears that the metal could be targeted in future US tariffs after being added to the Geological Survey’s list of critical minerals last month. Mined Silver production is down around 3% this year, with output constrained by declining ore grades and limited new project development."

"Looking ahead to 2026, we expect Silver prices to remain well supported by resilient industrial demand, constrained supply growth, and a more favourable macroeconomic environment."