At 12:21, XAG/USD $ 32.22, an increase of $ 0.17 or +0.54%.
Silver Rides Gold’s Rally but is confronted with volatility risks
Silver has benefited from the rise in Gold, with spot prices that recently hit $ 33.39 – it is highest since the end of October. The metal has so far increased by 14% in 2025, after a profit of 21% in 2024, supported by a strong demand on both precious and industrial markets.
Although some analysts suggest that Silver could challenge his 10-year peak near $ 35, others are careful. Silver is historically left behind in gold and is usually more volatile. The metal could not match the record -breaking run of Gold in 2024, which means that traders are wary of sustainability in his recent step higher.
American rates and market spreads stimulate the demand from the silver
An important engine of the recent power of Silver is concern about American trade policy. The threat of steep import tariffs, later postponed to March, has contributed to a peak in the American Comex Silver Futures. The March contract was last 3.3% at $ 33.79.
At the same time, the premium between CME Silver Futures and London Spot prices has increased, which has extended significant inflow into Comex-approved warehouses. CME Silver shares have risen 22% to 375.8 million ounces since November, while London Vault Inventories fell by 8.6% in January – the sharpest monthly decline. This shift has fueled the speculation that the supply chain of silver will be tighter, which contributes to bullish sentiment.
Silver’s high volatility increases caution for traders
Despite recent profit, Silver’s volatility remains a concern. Historically, when gold makes a decisive move, the price fluctuations of Silver are often 2.0-2.5 times larger. In 2024, Gold set up 40 record highs, while Silver was unable to reach new peaks, so that traders were frustrated.