The price of silver hit the highest level since 2012 on Thursday, while the price of gold reached a record high. Expectations of further interest rate cuts from the Federal Reserve boosted precious metals.

The price of silver rose 2.8% to $32.71 an ounce on Thursday, and this year's increase extended to 37%. At the same time as the price of silver rose, precious metals generally rose, and the price of gold reached another record high.

Silver is one of the top performing commodities this year. The prospects for the Federal Reserve to relax monetary policy and cut interest rates further last week are favorable to these precious metals, which do not bring interest returns. As China takes steps to promote economic growth, the possibility of increased industrial use also supported the rise of silver. At the same time, silver ETFs also showed signs of increasing capital inflows.

The price of gold hit a record high of $2,685.58 per ounce on Thursday, surpassing the all-time high set in the previous trading day.

At 1:05 p.m. London time, spot silver rose 2.5% to $32.62 an ounce, and gold rose 0.9% to $2681.77. The price of silver is still far below the historic high of nearly 50 US dollars set in 2011.