Silver Price News: Silver Hits Four-Month High As Gold Marches Higher

Silver prices jumped by more than a dollar on Tuesday, rising to their highest since late May, as bullish sentiment over lower interest rates combined with safe haven demand for precious metals.

Prices rallied as high as $32.31 an ounce on Tuesday, the highest price for silver since May 28. That compared with around $30.77 an ounce in late trades on Monday.

Sentiment remains bullish for both gold and silver following the US Fed’s 50-basis-point cut to interest rates on September 18^th, and the outlook is also positive as the markets mull the prospect of further cuts in the coming months. Gold hit a new all-time high on Tuesday, pulling silver prices higher.

Heightened tensions between Israel and Lebanese militant group Hezbollah this week have amped up the risk of a deeper conflict in the region, pushing investment flows away from riskier assets toward safe havens such as gold and silver.

In recent days, silver had been knocking on the door of the upper boundary of a three-month declining price channel, and the grey metal’s surge this week has finally pushed prices out of this range. The prospects of further loosening of monetary policy and ongoing geopolitical instability could see silver hold or even extend these gains. Moreover, a push above $32.70 an ounce would put silver at a 12-year high.

Wednesday is looking fairly light on data releases, and the market’s attention will be focused on Thursday’s US durable goods orders for August and the final GDP growth figures for Q2.