London silver surged overnight, breaking through the $60/oz barrier as the gold-silver ratio dipped below 70. With open interest remaining elevated, the market continues pricing in tight physical supply and low inventories, sustaining the "short squeeze" narrative. Analysts warn the rally may persist until supply constraints ease, urging caution against further upside risks.
Macro drivers show mixed signals: The latest U.S. ADP data revealed private payrolls added 4,750 jobs weekly over four weeks ending November 22, snapping a four-week losing streak and offering labor market optimism. This prompted a modest dollar rebound, slightly capping precious metals' gains.
All eyes now turn to the Fed's rate decision tonight, where a 25bp cut is widely priced in. Should Chair Powell strike a hawkish tone or the dot plot signal fewer 2026 rate cuts, traders brace for potential "sell-the-fact" pressure. Near-term silver volatility warrants caution.
Disclaimer: Information sources are deemed reliable but not guaranteed. Views expressed are for reference only, not constituting investment advice. Investors assume full responsibility for trading decisions.
