Silver rose on Friday. XAG/USD hit $78.91 per troy ounce. That was up 5.52% from $74.78 on Thursday, and up 11.01% so far this year.
In other units, silver was $2.54 per gram. The Gold/Silver ratio was 63.11 on Friday, down from 65.73 on Thursday.
Silver is a precious metal. People buy it as coins and bars. It is also traded through products like Exchange Traded Funds (ETFs) that track its market price.
Many factors can move silver prices. These include geopolitical events, recession worries, and interest rates. Silver pays no yield, so rate changes can have a bigger impact.
Silver is priced in US dollars. A stronger dollar can pressure prices, while a weaker dollar can support them.
Other drivers include investor demand, mining supply, and recycling. Industrial demand also matters. Use in electronics and solar can push prices up or down. Economic conditions in the US, China, and India matter too, along with jewellery demand in India.
Silver often moves with gold. Traders also watch the Gold/Silver ratio to compare their prices.
The 5.52% jump to $78.91 shows volatility is now very high. The Cboe Silver ETF Volatility Index (VXSLV) jumped more than 30% this week. That makes option-selling strategies more appealing, since premiums are higher. Examples include covered calls on existing holdings or cash-secured puts.
This rally likely follows last week’s softer US inflation report. Inflation came in at 2.1%, which increased expectations for an earlier Federal Reserve rate cut. That support may make call options attractive for traders looking for more upside. Similar volatility spikes hit metals in early 2025 after changes in Fed rate-cut expectations.
Stronger industrial demand is also supporting prices. After the Green Infrastructure Initiative announced in January, the Silver Institute now expects industrial demand to rise 15% in 2026. That could make short-term pullbacks look like buying opportunities for bullish traders.
The Gold/Silver ratio also dropped to 63.11. This suggests silver is beating gold by a wide margin. It is the lowest ratio since the second half of 2025. One way to trade this is a pairs trade: long silver futures and short gold futures.
After an 11% gain this year, a short-term pullback is possible. High implied volatility makes protective puts more expensive, but they may still matter for large positions. Put spreads can lower the cost while still offering downside protection.
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