Silver (XAG/USD) fell on Tuesday, according to FXStreet data. It traded at $82.63 per troy ounce, down 1.49% from $83.88 on Monday.
Since the start of the year, silver is up 16.24%. The price was $2.66 per gram.
Gold Silver Ratio Update
The gold/silver ratio was 61.16 on Tuesday, up from 60.56 on Monday. The ratio shows how many ounces of silver equal the value of one ounce of gold.
Silver is a precious metal used as a store of value and a medium of exchange. Investors can buy it as coins or bars, or trade it through products such as exchange-traded funds (ETFs) that track its price.
Many factors can move silver prices. These include geopolitical events, recession concerns, and changes in interest rates. The US dollar also matters because silver is priced in dollars. Supply, recycling, and overall demand can also shift prices.
Industrial demand can be a major driver. Use in electronics and solar energy can push prices up or down, and economic conditions in the US, China, and India can add to volatility. Silver often moves with gold, and traders use the ratio to compare their relative value.
Market Outlook And Key Drivers
We view today’s 1.49% drop as a small pullback within a strong uptrend. Silver is still up more than 16% for the year, which points to solid momentum that we believe reflects broader economic trends. This modest dip may offer a buying opportunity for those who expect the uptrend to continue.
The macro backdrop looks more supportive for precious metals. After the rate hikes seen through 2025, inflation has eased to 2.8%. This has led many to expect the Federal Reserve to keep rates unchanged. As a result, the US Dollar Index (DXY) has weakened to around 101.3, which can support dollar-priced assets such as silver.
Industrial demand also helps support prices. Global manufacturing PMIs have improved, and a recent Silver Institute report forecasts a 15% year-over-year rise in demand from the solar panel industry in 2026. Strong industrial use, especially tied to green energy, may reduce some of the swings seen in assets driven mainly by investment flows.
The gold/silver ratio is also important to watch. It rose to 61.16, but it spent much of 2025 above 75. That comparison suggests silver has still outperformed gold. If the ratio keeps rising, it may indicate silver is becoming undervalued again and could be setting up for another move higher.
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