Silver price jumped nearly 9% to trade at a record high of $78.65, on Friday (local time) according to the New York Commodity Exchange. With this surge, the white metal has outpaced gold this year, with prices up more than 158% over the past 12 months. The rally extended across the broader metals market. Spot gold climbed to an all-time high of $4,549.71 an ounce, while platinum touched a record $2,454.12 after gaining around 10%, according to Reuters. Spot palladium also recorded the sharpest move of the session, rising more than 14% to $1,924.03 an ounce. Gold, meanwhile, edged up just over 1.2% to reach a high of $4,562.70.
Precious metals soar – What’s behind the rally?
Silver rose on the back of tight supply, rising industrial demand and expectations of more rate cuts by the Federal Reserve. Analysts have also pointed to a mix of lower interest rates, growing use of silver in AI data centres, supply constraints and uncertainty around tariffs as key drivers behind the white metal’s surge this year.“Prospect of lower US interest rates is still supporting demand for gold and silver, lifting both metals to new record highs,” UBS analyst Giovanni Staunovo told Reuters. In early trading, silver crossed the $75-per-ounce level for the first time, as both precious and industrial metals rallied amid economic and political uncertainty.Gold is on course for its strongest annual performance since 1979, supported by Federal Reserve policy easing, geopolitical risks, central bank buying, higher ETF holdings and ongoing de-dollarisation. Silver has benefited from structural supply deficits, its designation as a US critical mineral and strong industrial demand, far outpacing gold’s nearly 72% rise.Platinum and palladium, widely used in automotive catalytic converters, have also advanced sharply amid tight supply conditions, tariff uncertainty and a shift in investment demand away from gold. Platinum has gained about 165% this year, while palladium is up more than 90% year to date.“Momentum-driven and speculative players have been powering the rally in gold and silver since early December, with thin year-end liquidity, expectations of prolonged US rate cuts, a weaker dollar and a flare-up in geopolitical risks combining to push precious metals to fresh record highs,” Kelvin Wong, senior market analyst at OANDA, told Reuters.“Looking ahead into the first half of 2026, gold could move towards the $5,000 level, while silver has the potential to reach around $90,” Wong further said.Traders are currently pricing in two US rate cuts next year, a support that continues to lift non-yielding assets such as gold and silver. At the same time, market sentiment has also been influenced by geopolitical developments, including US moves related to Venezuelan oil and strikes against Islamic State militants in northwest Nigeria following attacks on Christian communities.
