Silver prices have hit a record high of almost $66 during Asian trading. This increase comes amid rising worries about the US economy, demonstrated by the unemployment rate climbing to 4.6% in November. Economic reports show that the US added 64,000 jobs in November, which is better than expected, but follows a loss of 105,000 jobs in October. Retail sales were stagnant in October, and the preliminary S&P Global PMI dropped to 53.0 from 54.2. Many believe the Federal Reserve may cut interest rates more than predicted in 2026. There’s now a 67.6% chance of at least two rate cuts next year. Currently, silver prices are up 3% and remain strong, holding above the 20-period EMA of $63.28. The 14-period RSI is close to the overbought level at 69.16, indicating that prices might cool down before rising further. The market outlook stays positive while silver is above the rising EMA, but a fall below this level could put silver at risk, with support expected around $60.00. Silver is valued for its inherent worth and ability to diversify investment portfolios. Its price is affected by geopolitical issues, interest rates, and the strength of the US Dollar. Demand from industrial and technological sectors also plays a key role in silver’s market. Silver’s recent rise to nearly $66 is driven by disappointing US economic data. The Consumer Price Index for November showed inflation easing to 3.1%, strengthening expectations of upcoming Fed rate cuts. This trend has sparked a surge in demand for safer assets like silver. Signs of an economic slowdown, such as the unemployment rate rising to 4.6% in November 2025, have the market predicting more aggressive actions from the Federal Reserve. There’s now nearly a 70% chance of two interest rate cuts in 2026, making silver—a non-yielding asset—more appealing. The surge to record highs has led to increased volatility in silver options, with the CBOE Silver ETF Volatility Index (VXSLV) reaching 35%, the highest in over a year. This indicates that options are pricey, making it expensive to buy calls or puts directly. The high Relative Strength Index near 69 suggests the rally might soon take a breather. Given the volatility, we should explore strategies that take advantage of this situation. Selling cash-secured puts during pullbacks to the $63 support level could be beneficial. Alternatively, bull call spreads can be used to aim for a rise toward the $70 target while limiting costs and risks. These defined-risk trades are wise while prices are at record highs. Looking forward, the outlook for silver remains strong due to its industrial applications. Forecasts for 2026 suggest global solar panel installations will increase by another 30%, significantly boosting silver demand as a crucial component. This offers a solid support for silver beyond its status as a safe haven. We are also tracking the gold/silver ratio, which is currently around 85:1, a historically high level. This indicates that silver may be undervalued compared to gold, suggesting it could outperform if the precious metals rally continues. A break below the 20-period moving average at $63.28 would signal us to reconsider this bullish perspective.

Current Market Trends of Silver Prices

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