Silver Extends Blistering Rally With Yet Another Record High

The XAG/USD pair rose to an all-time high of $58.95 an ounce on Wednesday before paring some of the gains.

• At the time of writing, silver futures maturing in March 2026 delivery traded 0.1% lower at $58.64.
• While silver may continue to outperform, its price action remains volatile, and overbought conditions pose a short-term risk for bullish positions, said veteran commodities expert Ole Hansen.
• Gold remained steady, but DXY fell below its 50-DMA for the first time since Oct. 17.

Spot silver prices climbed to record highs yet again on Wednesday, a run that has seen the metal scale fresh peaks in three of the last four sessions.

The XAG/USD pair rose to an all-time high of $58.95 an ounce earlier in the session before paring some of the gains. It is currently trading at just over $58.

Silver’s Surge To New Records

On Friday, spot silver climbed past $55 an ounce for the first time, buoyed by a weak dollar as traders bet on a potential interest rate cut on December 10. The rally continued on Monday with silver climbing above $58 per ounce. While there have been two separate pullbacks over the past month, spot prices continue to remain well above the 50-day moving average (50-DMA).

At the time of writing, silver futures maturing in March 2026 delivery traded 0.1% lower at $58.64.

Pullback On The Cards?

While silver may continue to outperform, its price action remains volatile, and overbought conditions pose a short-term risk for bullish positions, veteran commodities expert and Head of Commodity Strategy for Saxo Bank, Ole Hansen, wrote in a post on X on Wednesday.

In a report for Saxo Bank, Hansen stated that, as London vault inventories are depleted to meet strong silver demand from the U.S. and India, lease rates have jumped, tightening conditions and adding pressure on traders.

Gold Remains Steady

Spot gold price (XAU/USD) was down marginally at $4,200.3 per ounce on Wednesday morning. The pair has benefited from a weaker dollar and rising expectations of a rate cut this month. Recent comments from top Fed officials, along with weaker post-shutdown economic data, have reinforced market expectations for a rate cut next week.

Data from the CME FedWatch tool showed an 89.2% probability of a 25-basis-point rate cut at the December 10 meeting. A week back, the figure stood slightly lower at 83.4%.

Meanwhile, the U.S. Dollar Index (DXY) fell for a fourth straight session. It was down 0.3% at 99.03, falling below its 50-day moving average (DMA) for the first time since October 17.

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