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Spot silver touched a fresh high above $61 during Asian trading today, keeping its rally intact after a clean breach of the $60 handle ahead of the Fed’s interest rate announcement.

The precious metal has more than doubled this year, driven by a mix of stubbornly high inflation, supply constraints, and growing investor demand for electronics, solar panels, and ETFs.

Mining supply has declined over the past decade while demand continues to grow, creating a structurally tight market.

Hopes that the Fed will slash rates also help push silver to fresh highs.

Markets are pricing in an 87.6% likelihood of a Fed rate cut on Wednesday, according to CME FedWatch. This leaves only a little more than a 12% chance that rates will stay unchanged.

A Fed rate cut could support silver prices, especially when combined with already tight supply and strong industrial and investment demand.

Silver now outperforms gold and stocks, though gold already enjoyed its own spotlight earlier this year, especially from August through late October, as investors reacted to tariff-related economic risks. Year-to-date, gold has risen roughly 60%.