The precious metals market has witnessed dramatic movements, with silver experiencing a significant price rally while gold eases from record highs following the U.S. Federal Reserve's interest rate decision. Silver prices made a huge leap in recent trading days, partly driven by the 'first notice day' for December 2025 futures on the Comex exchange in New York on November 28, which saw delivery requests for over 41 million ounces of silver. Rumors, though unconfirmed, circulated about a Chinese delivery request for 400 million ounces and JP Morgan potentially moving precious metals trading to Singapore, adding to market fervor.
Simultaneously, gold prices retreated from all-time highs above $3,700 per ounce after the Fed cut its benchmark rate by 25 basis points to a range of 4.00%-4.25%, signaling two more cuts this year. Fed Chair Jerome Powell's comments on a meeting-by-meeting approach and upward inflation risks led to a dollar rebound, pressuring gold. Geopolitical tensions, including conflicts involving the US, Venezuela, Russia, China, and Israel, alongside low physical silver inventories in Shanghai and London, continue to underpin long-term demand. Market analysts note that silver's rise persists despite distribution, with further upside expected, while gold may see more correction due to overbought conditions.
