Silver Breaks $75 Record as Rate-Cut Hopes and Year-End Trading Fuel a Fast Rally

2025-12-26 06:23:12

Abstract generation in progress

Silver hit a new all-time high on Friday, December 26, 2025, briefly touching $75.14 an ounce in spot trading before easing toward the mid-$74 range. Traders tied the spike to expectations of more U.S. interest-rate cuts, a softer dollar, and fresh geopolitical worry. They also blamed thin year-end liquidity for making every big order feel louder.

Why the move got so sharp

This jump did not come from one headline. Instead, several forces lined up at once:

Rate-cut bets lifted demand for non-yielding assets like precious metals
Reduced holiday liquidity amplified momentum-driven buying
Risk-off positioning pushed gold, silver, and platinum to records in the same burst

If you have ever tried to buy the last tickets for a popular show, you know the feeling. Fewer sellers can make prices jump quickly.

Supply tightness meets real-world demand

Silver’s rally also reflects “real economy” demand, not just a hedge trade. Reuters pointed to shrinking inventories and resilient industrial consumption, which supports the story of a market running tight

That matters because manufacturers still need silver for electrification trends that keep growing, even when investors turn cautious.

The surge also lifted silver-linked stocks. In India, Hindustan Zinc shares pushed to a fresh 52-week high as domestic MCX silver prices set new peaks

Looking ahead, Reuters noted forecasts that silver could reach $90 in early 2026 if rate cuts arrive and supply tightness persists. Still, traders expect bigger swings and more profit-taking after such a steep run

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