Gold prices rose slightly in Asian markets on Wednesday on expectations that the US Federal Reserve (Fed) will cut interest rates. Silver prices rose faster than gold, hitting a new high above $62 an ounce as silver is expected to be in tight supply and in high demand next year.
In addition, the US dollar weakened on Wednesday on expectations of a rate cut, which also boosted the prices of other metals. Silver prices have been rising rapidly since last week. After rising more than 100% in 2025, spot silver hit a new high of $62.018 on Wednesday.
Gold and other metals have also risen on expectations that supply will decrease next year and that the US will cut interest rates soon, as they are non-interest-bearing assets that gain more traction when interest rates fall. Most analysts expect the Fed to cut interest rates by 0.25% after its two-day meeting on Wednesday. However, with inflation still not well-established and some economic data unclear, it will be important to see how the Fed changes its economic outlook.
