12.09.2025 14:11
The price of silver reached $42.3 per ounce in international markets, hitting a 14-year high. Weak employment and moderate inflation data in the U.S. have strengthened expectations for a Fed interest rate cut. This situation has increased demand for gold and silver, with silver providing investors with over 45% gains since the beginning of the year.
The international market price of silver tested $42.3, reaching its highest level in 14 years. The upward movement in precious metals drew attention with the strengthening expectations of the Fed's interest rate cuts.
FED'S INTEREST RATE CUT EXPECTATIONS SUPPORTED THE MARKETS
The macroeconomic data released in the U.S. revealed that the labor market is cooling and inflation is moderate. This scenario increased expectations that the U.S. Federal Reserve (Fed) could act aggressively in cutting interest rates. The money markets are looking at a 25 basis point cut in the Fed's policy rate next week as a certainty, with a total of three interest rate cuts expected by the end of the year.
UPWARD TREND IN PRECIOUS METALS
The strengthening expectations of interest rate cuts reduced demand for the dollar and pulled down bond yields. This situation positively affected precious metals like gold and silver. The price of silver tested $42.3, marking the highest level since September 2011, providing investors with over 45% gains since the beginning of the year.
STRONG DEMAND FOR SILVER FROM INDUSTRY
Silver, which has the characteristics of a safe haven like gold, is also heavily used in industrial applications. As demand increases in the electronics, semiconductor, and renewable energy sectors, there is also significant need for silver in solar panels. The inclusion of silver in the U.S. "critical mineral" list has also been among the factors strengthening demand expectations.
COMMENTARY ON PRECIOUS METALS FROM AN EXPERT
Futures and commodity markets expert Zafer Ergezen noted that there has been strong demand for precious metals recently. Reminding that gold prices rose in September, Ergezen stated that inflation and employment data from the U.S. have increased expectations for interest rate cuts from the Fed. He noted that this development has positively reflected on both gold and silver prices.
GOLD AT A CRITICAL THRESHOLD OF $3,700
Ergezen pointed out that the price of gold is approaching the $3,700 level, which is critical. He said, "If we see optimism in growth-related data from the U.S. along with increasing expectations for interest rate cuts, we may see the rise in silver accelerate further."
GOLD/SILVER RATIO AND EXPECTATIONS
The expert stated that if strong data regarding economic recovery comes from the U.S. and China, the gold/silver ratio could fall below 80 within the year. However, he also indicated that weak employment data points to the Fed's delayed actions and that the slowdown in the economy may continue, expressing expectations of fluctuations at current levels in the ratio.
"FLUCTUATIONS ABOVE $40 WILL CONTINUE"
Ergezen stated that he does not expect sharp losses in silver and made the following assessment: "We have a high probability of seeing movements parallel to gold. The fluctuations in silver above $40 will continue. When signs of recovery come in economic data, silver may start to regain value compared to gold."