By Bas Kooijman, CEO and Asset Manager of DHF Capital S.A
Silver extended gains for a third consecutive session on Tuesday, reaching a fresh all-time high, fueled by a potent mix of geopolitical risk, robust demand fundamentals, and expectations of US rate cuts in 2026. Escalating tensions in Venezuela reinforced silver’s safe-haven appeal. Broader instability in the Middle East, Eastern Europe, and Asia further added to the risk premium. Additionally, silver’s rally is underpinned by strong investment demand. ETF inflows and sustained retail interest come on top of the expectations of a persistent supply deficit.
On the monetary front, market participants are now pricing in two interest rate cuts by the Federal Reserve next year. Today’s US GDP release could further shape those expectations. While signs of economic weakness may bolster non-yielding assets like silver, resilient data could temper upside momentum. Still, the underlying fundamentals remain constructive. With year-end trading volumes thinning, increased volatility could lead to fresh price spikes in the coming sessions.