Silver surged above $40 an ounce for the first time since 2011, while gold approached an all-time high due to the prospect of Federal Reserve rate cuts, driving a multiyear bull run in precious metal markets. Spot silver rose 2.6% to $40.7599 an ounce, with gold hitting a record in a London auction. Both metals have doubled in value over the past three years, driven by geopolitical and global trade risks. Expectations of US interest rate cuts have fueled the latest rally, with a key jobs report likely to support the case for cuts. The allure of non-yielding precious metals has increased with the prospect of lower borrowing costs, amid concerns over the Fed’s independence due to Trump’s criticisms. Trump’s move to fire Fed Governor Lisa Cook may have significant implications for global financial markets and investor confidence in the US. A federal appeals court ruled that Trump’s global tariffs were illegally imposed under an emergency law, but let the levies stay in place while the case proceeds. Gold spiked in April after Trump announced tariffs, while silver has outpaced gains this year as investors flock to ETFs backed by the metal. Factors like Fed rate cuts, a weakening USD, and rising ETF inflows are expected to support further upside for gold and silver. Lease rates for borrowing metal remain elevated, indicating tightness in the market. Precious metals have also found support amid concerns of potential US tariffs, with silver added to the list of critical minerals. Spot gold was up 0.7% to $3,472.59, while silver, platinum, and palladium all saw gains.

Read more at Yahoo Finance: Gold and Silver Jump as Rate-Cut Wagers Reignite Bull Run