Fed Cuts Rates; Gold Rises, Silver Hits Peak

The Federal Reserve executed an interest rate cut after a divided vote, signaling a probable pause in further reductions as officials seek clearer signals on the job market and inflation direction. Tai Wong, an independent metals trader, stated that "Gold traders like the result today," noting gold traded at day's highs after surviving profit-taking.

Lower interest rates enhance the appeal of non-yielding assets for investors. A majority of U.S. central bankers anticipate cutting short-term interest rates next year, though they are widely split on the extent, with three officials even penciling in a rate hike.

Fed Chair Jerome Powell declined to provide further guidance on future cuts, stating the central bank's rate policy is well-positioned. Wong added that "Powell has danced around raindrops, coaxing another rate cut from a divided committee." Silver's record surge is supported by rising industrial demand, falling inventories, and its designation as a critical mineral by the U.S. Analysts at SP Angel wrote that silver's outperformance reflects "speculative money flowing into a more levered play following gold's pullback," also benefiting from a "tight physical market" that experienced a supply squeeze in October.