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    Silver price rises to $58.00 per troy ounce, up 1.56%

    by VT Markets
    /
    Dec 5, 2025
    **Silver’s Role in Diverse Portfolios** ### Industrial Demand and Its Impact The recent rise in silver prices is largely due to monetary policy changes. In 2025, the Federal Reserve cut interest rates three times, making silver—a non-yielding asset—more appealing. Additionally, the US Dollar has weakened, with the DXY index close to 95, benefiting commodities priced in dollars. We expect this trend to continue, as central banks are currently focused on boosting economic growth over controlling inflation. Given this strong upward trend, buying call options can be an effective way to capitalize on further gains. However, it’s important to note that implied volatility is very high right now, making these options quite expensive. Traders who anticipate price stabilization or a decline might consider selling covered calls or creating put spreads for protection against a possible downturn. The rapid increase in silver prices raises the risk of a sudden drop if negative news emerges. We are also monitoring the Gold/Silver ratio, which stands at 72.76. Although silver has performed well recently, this ratio is still high compared to historical averages from the 20th century. This suggests that silver might still be undervalued relative to gold. This situation could present opportunities for pairs traders, who may look to buy silver and sell gold in anticipation of the ratio narrowing in the next few weeks. Create your live VT Markets account and start trading now.

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