Silver Surges to Historic Peak Above $69 as Precious Metals Rally Continues
On Monday, silver prices hit an all-time high of $69.23 per ounce, as precious metals continued their incredible surge fuelled by hopes of
Quick overview
- Silver prices reached an all-time high of $69.23 per ounce, driven by expectations of U.S. interest rate cuts and geopolitical tensions.
- In 2025, silver has gained 138%, significantly outperforming gold's 67% increase, due to strong investment inflows and high demand for safe havens.
- The Federal Reserve's dovish signals and recent economic data showing slowing inflation have further supported the rise in precious metals.
- Despite the bullish trend, analysts caution that profit-taking may occur as the year ends, especially if silver prices drop below key support levels.
On Monday, silver prices hit an all-time high of $69.23 per ounce, as precious metals continued their incredible surge fuelled by hopes of more U.S. interest rate cuts and rising geopolitical concerns. The white metal rose 2.7% in early Asian trading, doing far better than gold XAU/USD, which also reached a record high of $4,391.92 per ounce.
Silver’s Stellar Annual Performance: 138% Gains in 2025
Silver’s performance in 2025 has been nothing short of amazing. The metal has gone up 138% so far this year, which is a lot more than gold’s outstanding 67% gain. This substantial spike is due to a number of causes, including as large investment inflows, ongoing supply problems, and high demand for safe havens during times of global uncertainty.
The rise has been fueled by rising international tensions, especially worries over Iran’s nuclear program and ballistic missile capabilities. Israeli authorities are said to be getting more and more worried about Iran rebuilding nuclear facilities that were damaged in prior military strikes. This is a situation that usually makes people want to buy safe-haven assets.
Federal Reserve Policy Support
Expectations that monetary policy will become less strict have also helped the market. The Federal Reserve has told people to be careful, yet markets are already pricing in two rate cuts for 2026. In times of low interest rates, non-yielding assets like silver and gold tend to do well because they seem better than investments that pay interest.
Recent economic data from the U.S. has made dovish expectations stronger. The Consumer Price Index for November revealed that inflation was slowing down from 3% in October to 2.7% year-on-year, which was lower than the 3.1% expected. Core inflation also fell to 2.6%, which gives those who think the Fed will make further changes more reasons to believe it.
A weaker dollar has helped the metals’ rising trend by making them cheaper for customers from other countries.
XAG/USD Technical Analysis: Overbought but Bullish
From a technical point of view, the XAG/USD pair for silver has tremendous momentum but also indicators that it may be running out of steam. The 20-period Exponential Moving Average is at $61.14, which is substantially below the current price. This shows that the trend is strong. The 14-day Relative Strength Index, on the other hand, has risen to 77.44, which is well above the overbought level. This could mean that the market is about to cool down.
The bullish bias is still supported by a trend line that goes up from $49.96. Analysts say that even if the price is still above the 20-EMA, any dips could find support around the $61.14 level, which could keep the gain going.
Matt Simpson, a senior analyst at StoneX, warned that bulls should be careful as the end of the year gets closer. Simpson said, “Since gold has already gone up 4% this month and the year is almost over, bulls may want to be careful because volumes are going down and the chances of people taking profits are also going up.”
If silver drops below the trend line near $65, it would reduce the bullish bias and possibly allow for a deeper pullback toward the December 3 high near $59.00. The $60 level would be a strong psychological support level.
Broader Precious Metals Rally
The rise in silver prices was part of a larger rise in precious metals. Platinum rose 4.1% to $2,054.25, its greatest level in more than 17 years. Palladium rose 4% to $1,781.32, its highest level in over three years.
As 2025 comes to an end, silver’s long history of performance shows how popular it is when the economy and politics are uncertain. However, there is still a risk of profit-taking in the near term because of the high prices.
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