Spot silver surged to $61.6 per ounce ahead of the Fed’s expected rate cut, while March 2026 futures traded at $60.46.
- Silver prices have soared 106% in 2025, over four times last year’s gains.
- The surge accelerated when the gold-silver ratio spiked above 105 in April, analyst Ole Hansen said.
- Spot gold prices and the dollar index were trading marginally lower ahead of the outcome of the Fed meeting.
Spot silver (XAG/USD) extended its rally on Wednesday, surging to another fresh high as prices briefly touched $61.6 per ounce ahead of the Federal Reserve’s interest rate decision later in the day, where investors are broadly expecting a 25-basis-point cut.
At the time of writing, the spot prices eased off record highs and were trading up 0.3%, while silver futures for March 2026 delivery gained 1% to $60.46 per ounce.
The current run has seen silver prices increase by 106% so far in 2025, more than four times last year's gains.
Gold-Silver Ratio
According to veteran commodities expert and Head of Commodity Strategy for Saxo Bank, Ole Hansen, silver’s surge accelerated when the gold-silver ratio spiked above 105 in April, making silver appear deeply undervalued. Once prices broke major resistance levels in August, momentum traders, long-term investors, and macro funds piled in, turning a valuation gap into a full-fledged breakout.
In a Saxo Bank note on Wednesday, Hansen added that eroding confidence in fiat currencies, persistent inflation concerns, and rising fiscal deficits pushed investors toward hard assets. While gold buying by central banks remained strong, silver, a cheaper and more volatile alternative, benefited.
At the same time, industrial demand driven by electrification trends, solar power expansion, EV growth, and data-center build-outs increased demand, while years of weak mine supply kept the physical market tight.
These pressures also intensified after silver was added to the U.S. critical minerals list, prompting large pre-tariff purchases that drained global inventories. Warehouse stocks in Shanghai fell to decade lows, London lease rates spiked, and demand from India added further strain.
Outlook For 2026
Silver’s outlook in 2026 remains broadly constructive, though risks persist. A slowdown in AI-related investment or a reversal of U.S. tariff plans could ease tightness. Technically, holding the metal above the $54 to $55 per ounce zone remains crucial, while a sustained breakout would strengthen the case for higher prices next year, Hansen added.
Meanwhile, on Wednesday morning, spot gold (XAU/USD) was trading 0.1% lower at $4,203.2 an ounce, while futures for February 2026 deliveries also declined 0.1%.
Meanwhile, the dollar index (DXY) dropped 0.17% to 99.07, below its 50-day and 200-day moving averages.
How Did Stocktwits Users React?
The iShares Silver Trust ETF, which tracks silver, was up 0.3%. Retail sentiment on the platform shifted from ‘bullish’ to ‘neutral’ a day earlier, accompanied by ‘high’ message volumes.
SLV has gained more than 105% so far this year.
Read also:Only One Stock Among The ‘Magnificent 7’ Pack Currently Trades Below 200-DMA – No, It’s Not Apple
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