Silver price tops $40 for first time since 2011 as weak dollar fuels rally

Spot silver surged above $40 an ounce for the first time since 2011 as mounting expectations for US Federal Reserve rate cuts gave fresh momentum to a multi-year bull run in precious metals.

Prices jumped 2.7% to $40.72/oz, the highest since September 2011 on Monday morning. Gold also advanced, up as much as 1.2% to trade just below its April record above $3,500/oz.

“Gold, and especially silver, extended Friday’s strong gains, supported by sticky US inflation, weakening consumer sentiment, (expected) rate cuts … and concerns over Fed independence. Key resistance levels around $3,450 for gold and $40 for silver were breached, triggering momentum buying.