Silver prices reached $68.88 per troy ounce on Monday, increasing by 2.49% from $67.21 on Friday. Since January, Silver has risen by 138.41%. On Monday, the Gold/Silver ratio fell to 64.06, down from 64.57 on Friday. For smaller amounts, one gram of Silver costs $2.21.

Factors Influencing Price

Silver prices are impacted by geopolitical unrest and fears of recession. Low interest rates and changes in currency value, especially the strength of the U.S. Dollar, also affect prices. Silver is widely used in industries like electronics and solar energy. Increased industrial demand drives prices up, while a decrease in demand can lead to lower prices. Silver pricing often follows Gold since both are viewed as safe-haven assets. The Gold/Silver ratio helps assess their value in relation to each other. With silver’s price jumping 138% since the start of the year, we can expect increased volatility. The current price of $68.88 is a new record, indicating strong momentum. Traders should be ready for significant price fluctuations in the coming days.

Federal Reserve and Market Expectations

The Federal Reserve’s shift towards a more dovish approach is fueling this rally. Market expectations are leaning towards interest rate cuts in early 2026, with Fed funds futures suggesting a nearly 90% chance of a cut by March. Lower future interest rates make non-yielding assets like silver more appealing. A weakening U.S. dollar, recently dropping below 95 on the DXY index, adds support. Since silver is priced in dollars, a weaker dollar makes it less expensive for foreign buyers, increasing demand. This trend may persist as the Fed hints at monetary easing. Geopolitical tensions also help maintain prices as a safe-haven option. The ongoing situation in the Middle East adds risk, similar to past incidents in 2022 and 2024 when investors turned to precious metals. Industrial demand remains crucial and may be undervalued. The International Energy Agency has raised its 2026 solar installation forecast by 15%, boosting silver’s consumption outlook. In the last quarter, holdings in major silver ETFs rose more than 20%, indicating strong interest from both investors and industries. For option traders, high implied volatility offers opportunities. Selling out-of-the-money puts can generate significant premiums for those who are bullish on silver or want to buy it at a lower price. Alternatively, buying call spreads allows traders to benefit from potential price increases while managing premium costs. The Gold/Silver ratio is now at 64.06, reflecting silver’s solid performance. Historically, during precious metal bull markets, this ratio has fallen further, sometimes approaching 50. This suggests silver may still have potential for further gains compared to gold. Create your live VT Markets account and start trading now.

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