Silver price in December trending as third strongest month in past 30 years on expectation of another Fed rate cut by the US

Spot silver price was up 3.60 percent at $58.42 an ounce on December 2, as of 1:07 IST amid growing supply concerns and hopes for additional rate cuts by the U.S Federal Reserve next week. India’s silver futures for December closed the previous session at Rs 1,82,010 per 1 kilogram of 999 purity.

The Augmont Bullion report published on December 1, noted that Silver’s price has surged 100 percent over the past 12 months as compared to 60 percent increase in gold’s price. Silver ended last week 17 percent higher and gold increased six percent. Silver had its biggest December returns in 1997 and 2020, with gains of roughly 17 percent over the month.

“This seasonal tailwind may intensify the present price trend for the December target of $60 and $62, with firm support at $53, assuming tight supply conditions continue.

“Many investors are wondering if the boom may continue until December. It seems plausible based on seasonal patterns. After July’s 3.2 percent and January’s 2.7 percent average returns, December has been the third-strongest month for silver during the past 30 years, with an average gain of 2.12 percent,” said the Augmont report.