Gold prices were steady in Asian trading on Wednesday, holding a positive tone ahead of a widely expected interest rate cut from the U.S. Federal Reserve. Silver, however, significantly outperformed gold, surging to a record high above $62 per ounce on growing expectations of tighter supplies and stronger demand next year.
Broader metal markets also moved higher as the U.S. dollar weakened in anticipation of the Fed’s decision. Still, some investors remained cautious, unsure whether the central bank would offer a dovish outlook or surprise markets with a more hawkish tone.
Spot gold inched up 0.1% to $4,211.24 per ounce, while March gold futures rose 0.1% to $4,239.60 by 00:44 ET (05:44 GMT).
Silver Hits Record High Amid Supply Concerns and Safe-Haven Demand
Silver continued to dominate the metals market, extending its recent rally to hit a new record on Wednesday. Spot silver reached $62.018 per ounce, building on gains of more than 100% so far in 2025.
The metal benefited from a surge in speculative buying, fueled by expectations of supply shortages and stronger industrial demand next year. The U.S. government recently designated silver as a critical mineral, reflecting Washington’s efforts to secure reliable supply sources. Silver plays an essential role in electronics and various industrial applications.
Investor appetite was also driven by silver’s appeal as a cheaper safe-haven alternative to gold, especially as gold prices have also climbed sharply this year.
Gold and Base Metals Gain as Fed Rate Cut Nears
Gold and other metals found support from expectations of lower U.S. interest rates, which typically boost non-yielding assets.
Platinum briefly touched a near two-week high of $1,700 per ounce, while London Metal Exchange copper futures rose 0.9% to $11,576.95 per ton.
The Federal Reserve is widely expected to cut rates by 25 basis points at the conclusion of its two-day meeting. Yet the focus remains on the Fed’s forward guidance, with concerns that sticky inflation and uncertain economic data may lead to a more cautious—or hawkish—stance than markets currently expect.
Attention also turned to the future leadership of the Fed. Reports indicate that U.S. President Donald Trump will begin final interviews this week to select a successor for Fed Chair Jerome Powell, whose term expires in May 2026.
