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The price of silver has hit a record high ahead of an expected US Federal Reserve interest rate cut and as demand from the technology industry for the precious metal remains high.

Silver crossed $60 (£45.10) an ounce on the spot market, where the precious metal is bought and sold for immediate delivery, for the first time on Tuesday.

Gold, which hit record highs earlier this year as concerns grew about the impact of US tariffs and the global economic outlook, also made gains this week.

Investors tend to move money into precious metals like gold and silver as interest rates come down and the US dollar weakens.

The US central bank is widely expected to cut its main interest rate by a quarter of a percentage point on Wednesday.

When interest rates are cut, traders typically buy assets like silver because the benefits of keeping cash in the bank or buying short-term bonds falls, said Yeow Hee Chua from the Nanyang Technological University.

“That naturally shifts demand toward assets viewed as stores of value, including silver,” he said.

The move into so-called “safe-haven” assets was also a key reason for gold hitting new record highs in recent months, as it crossed $4,000 an ounce for the first time.

Silver’s rally could also be seen a “spillover effect” from the jump in the value of gold as investors look for cheaper alternatives, said OCBC bank analyst Christopher Wong.

Experts say the value of silver was also pushed up as strong demand from the technology industry outstripped supplies.

That has helped more than double the value of silver this year as it outperformed other precious metals, including gold.

“Silver is not only an investment asset but also a physical resource,” and more manufacturers are finding a need for the material, said Kosmas Marinakis from the Singapore Management University.

The precious metal, which conducts electricity better than gold or copper, is used to produce goods like electric vehicles (EVs) and solar panels.

But it is difficult to quickly increase silver supplies as the majority of global output is a by-product from mines that mainly extract other metals like lead, copper or gold.

The price of silver is also being boosted by concerns that the US may impose tariffs on it as part of President Donald Trump’s trade policies.

Manufacturers have been racing to secure supplies to ensure their operations are not interrupted by shortages, which has helped to push up prices on global markets, said Prof Marinakis.

He added that he expects the price of silver to remain high in the coming months.