Silver Price News: Silver Hits 12-Year High As Gold Powers Higher

Silver prices rallied to their highest since 2012 on Thursday, in the wake of fresh all-time highs for gold.

Silver prices powered up as high as $32.75 an ounce on an intraday basis on Thursday, albeit giving up some of the gains later in the session. That compared with around $31.84 an ounce in late trades on Wednesday.

The latest surge for silver pushed its price above its late May highs of around $32.30 an ounce, meaning the grey metal has now scored a 12-year high, reaching levels last seen in December 2012.

Gold’s onward March higher has undoubtedly given a boost to silver. The gold-to-silver ratio has moved in a range of roughly 73 to 95 for the last four years, and maintaining this ratio alone has meant that gold’s rally implies higher silver prices.

The recent start to US interest rate cuts has provided a tailwind for silver as well as gold, and the prospect of further loosening of monetary policy in the remainder of the year provides a supportive element going forward.

The markets will be watching out for the US PCE price index figures for August on Friday, while Monday will see a speech by US Fed chair Jerome Powell, both of which may provide further signals on the outlook for interest rates as the market mulls the chances of further cuts at the next meeting in November.