Silver Prices Break Through $60 Mark

Silver prices rose rapidly again. The London spot price, a key international benchmark, broke through $60 per ounce for the first time on December 9th. The upward trend continued in Asian trading on the 10th, rising $0.7851 (1.3%) to $61.4584. Speculative funds poured in due to bets on a potential interest rate cut by the US Federal Reserve (FRB).

Gold prices in Japan also hit a new high. Tanaka Precious Metals Industry, Japan’s largest gold retailer, announced a retail price of 23,430 yen per gram (approximately 1062.9 yuan) on the morning of the 10th, up 218 yen (0.94%) from the previous day. Besides the expectation of a US interest rate cut supporting the market, the depreciation of the yen against the dollar in the foreign exchange market pushed up the yen-denominated price.

A further interest rate cut by the US would increase the investment value of precious metals such as gold and silver, which do not offer interest. Regarding the Federal Open Market Committee (FOMC) meeting held by the Federal Reserve on the 10th, Japanese market analyst Itsuo Toyoshima stated, “If the market announces a view that interest rate cuts will continue beyond next year, then precious metals will receive further support.”

On the other hand, if signals emerge that the market remains cautious about further interest rate cuts, it will become a burden on the market.

Regarding silver prices, Koichiro Kamei, representative of the Japan Market Strategy Institute, pointed out, “The current upward trend is very rapid, and a sharp drop is very likely in the near future.” Silver also has the potential to attract speculative funds and surge due to its undervaluation relative to gold; if market expectations for interest rate cuts disappear, a significant correction is also possible.（金価格）