(Bloomberg) -- Silver hit the highest level since 2012, while gold reached a new record as expectations for additional Federal Reserve interest-rate cuts boosted precious metals.
The white metal climbed as much as 2.8% to $32.71 an ounce on Thursday, extending this year’s gain to 37%. Its advance came during a broad rally for precious metals, with gold hitting another all-time high. Both metals gave up some of their early gains after the latest US data showed the labor market remained resilient.
Silver is one of the year’s best-performing major commodities as the Fed’s pivot toward easier monetary policy last week, and the prospect of further rate cuts, benefit the non-yielding metals. Gains have been supported by the possibility of increased industrial use as China moves to boost its economy, while flows into silver-backed exchange-traded funds have shown signs of picking up.
“Silver is viewed as the relatively cheap sibling to gold, and as gold continues to reach fresh record highs and copper hits a 2 1/2 month high, traders took it through resistance at $32.50,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “However, the break didn’t stick and once prices dropped back below, stop loss selling was triggered.”
Gold hit a record of $2,685.58 an ounce on Thursday, exceeding the all-time high set in the previous session, before paring most of the gains to trade at $2,664.85 as of 9:42 a.m. in New York.
Traders of precious metals will be analyzing a pre-recorded address by Fed Chair Jerome Powell that’s due to air later Thursday at the 10th annual US Treasury Market Conference. Several policymakers have expressed their openness to making additional — potentially large — interest-rate cuts.
US data including the personal consumption expenditures gauge due Friday could give additional indications on the Fed’s likely easing path.
Silver for immediate delivery traded 0.7% higher at $32.02 an ounce. Prices for silver remain well below its all-time peak of almost $50, set in 2011.
--With assistance from Yvonne Yue Li.
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