Silver (XAG/USD) has reached a new peak for 2024, marking a 12-year high on Thursday. This surge follows the announcement from Chinese authorities regarding an additional 1 trillion CNY in stimulus, supplementing the measures already proposed by the People’s Bank of China (PBoC). Given that China is the largest consumer of silver globally, this stimulus is anticipated to significantly boost demand for the precious metal.
In addition to the positive impact from China’s economic initiatives, silver prices have also benefited from escalating tensions in the Middle East, particularly the ongoing conflict between Israel and Hezbollah.
Market sentiment is further buoyed by expectations that the Federal Reserve (Fed) will implement another 50 basis point cut to its key fed funds rate in its upcoming November meeting. Lower interest rates tend to enhance the appeal of silver, a non-yielding asset, making it more attractive to investors.
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