The precious metal hit an all-time high of $59.34 per ounce.
- Industrial demand and the tightening supply of physical silver have led to a surge in prices.
- Spot gold price was up 0.12% at $4,213.6 per ounce.
- The U.S. dollar index (DXY) was little changed at 99.
Silver’s smashing rally has sparked yet another milestone as spot prices breached past $59 per ounce for the first time, a run that has seen the precious metal scale fresh peaks in four of the last six sessions.
On Friday, the precious metal hit an all-time high of $59.34, resulting in a 100% year-to-date return.
The run began last Friday, as 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 in December. The rally continued on Monday with silver climbing above $58 per ounce and extended on Wednesday, with the XAG/USD pair hitting a high of $58.95 an ounce.
At the time of writing, the spot price eased off all-time highs, trading 2.2% higher at $58.44.
Silver’s record rally is tied to the metal’s high industrial demand. Silver is used in a wide range of applications, including switches, batteries, and solar panels. Physical silver supplies have tightened as London vault inventories have depleted to meet strong silver demand from the U.S. and India.
Gold Edges Higher
Spot gold price (XAU/USD) was up 0.12% at $4,213.6 per ounce on Friday. The pair has benefited from a weaker dollar, rising expectations of a rate cut this month following dovish comments by Fed officials, and weaker post-shutdown economic data.
Data from the CME FedWatch tool showed an 87.2% probability of a 25-basis-point rate cut at the December 10 meeting. A week back, the figure stood slightly lower at 86.4%.
Last month, Deutsche Bank raised its 2026 gold forecast, expecting prices to reach $4,450 per ounce, up from its previous estimate of $4,000 per ounce. The bank sees gold trading in a wide $3,950 to $4,950 range next year.
Greenback Remains Steady
The U.S. Dollar Index (DXY), which measures the greenback’s strength against a basket of six key currencies: the euro, Japanese yen, pound sterling, Canadian dollar, Swedish krona, and Swiss franc, was little changed at 99, a level just below its 50-day moving average.
ETF watch
The iShares Silver Trust (SLV) was up 2% at $52.8, while the SPDR Gold Shares ETF (GLD) traded flat at $387.2
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