Silver Price Surges Above US$43 Following Rate Decision

Alongside silver's move, the gold price reached a fresh all-time high on Monday, climbing to US$3,737 per ounce. The gains follow an interest rate cut from the Federal Reserve at its meeting last week, on September 16 and 17.

Although inflation has been moving further from the Fed’s 2 percent target, there has been greater uncertainty in the labor force. August’s nonfarm payroll report indicated greater slowing in the jobs market, with just 22,000 jobs added during the month and featured a downward revision showing the economy lost 13,000 jobs in June.

In its decision, the Fed focused on the worsening jobs market as part of its dual mandate goal of maximum employment and stable prices, noting that a 25-point cut allows it greater flexibility should the effect of tariffs on inflation be more sustained.

However, 90 percent of analysts are predicting that the central bank will make another cut when it next meets on October 28 and 29, which will provide additional tailwinds for precious metals markets.

The silver market is also benefiting from a high gold price as some investors turn to alternative haven assets with lower entry prices. Additionally, silver has been in a structural deficit for the past several years as demand increases from industrial segments, providing significant upward momentum. So far this year, the silver price has increased 52 percent, outpacing gold, which has gained 42 percent.