Metals hit highs, boosting mining stocks in the stock market.

One of the key drivers behind the recent surge in silver prices has been its strong correlation with gold, according to analysts.

On Thursday, metals once again broke records in London and Chicago. Silver prices reached their highest level in nearly 12 years, fueled by gold’s rally to historic highs. Interest rate cuts by major central banks have sparked renewed investment in precious metals.

Silver futures rose 0.91% on the Chicago Mercantile Exchange, closing at $32.31 per ounce after hitting a peak of $32.71, the highest since December 2012. Analysts expect silver to continue rising in the coming quarters, driven by further interest rate cuts and continued economic stimulus from China.

Silver, both a safe-haven asset and a key material in industrial applications, has gained more than 35% so far this year. A significant part of this rise has been attributed to gold’s performance, said Aneeka Gupta, Director of Macroeconomic Research at WisdomTree, highlighting their strong correlation.

Most of the remaining demand for silver has come from the industrial sector. Silver’s use in photovoltaic products, such as solar panels, has nearly doubled compared to the previous year, according to Gupta.

Spot gold rose 0.5% to $2,670.52 per ounce after hitting a record high of $2,685.42 earlier in the day. U.S. gold futures for December delivery advanced 0.39% to $2,694.90.

Gold has surged over 29% in 2024, setting multiple records along the way, driven by hopes of U.S. rate cuts, demand for safe-haven assets, and strong central bank purchases.

Copper prices also reached their highest level in nearly 16 weeks, buoyed by expectations of stronger metal demand following China’s announcement of fiscal stimulus measures and a loosening of monetary policy to boost its sluggish economy. Three-month copper on the London Metal Exchange (LME) broke the psychological $10,000-per-ton barrier, closing at $10,084, its highest level since June 7, with a 3.53% gain.