Silver hovered all-time highs above $54 per ounce on Friday and was poised to gain about 8% for the week, supported by tightening global supply and strong safe-haven demand. Markets were rattled after two US regional banks disclosed loan problems involving alleged fraud, heightening fears of broader credit market stress. Escalating US-China trade tensions, the prolonged US government shutdown, and growing expectations of further Federal Reserve rate cuts also bolstered appetite for precious metals. Geopolitical risks and concerns over surging government spending and debt further fueled safe-haven inflows as well. Additionally, silver rallied amid a historic squeeze in London, where a lack of liquidity has sparked a global hunt for the metal. Demand from India has further strained supply, prompting several mutual fund houses to suspend inflows into their silver ETF fund-of-fund schemes.
