Silver prices surged to a record high on Wednesday, climbing above $66 per ounce, while gold also strengthened as expectations of US Federal Reserve interest rate cuts resurfaced amid signs of a softening labor market.
Silver and gold prices
Spot silver jumped nearly 4% to $66.20 per ounce after touching an intraday record high of $66.90. The metal has gained about 129% so far this year, significantly outperforming gold.
“Silver is pulling gold up with it, as some capital rotates out of gold into silver, platinum, and palladium,” said Marex analyst Edward Meir. “Around $70 per ounce looks like the next logical short-term target.”
Spot gold rose 0.7% to $4,334 per ounce by late evening, after gaining more than 1% earlier in the session. US gold futures settled 1% higher at $4,373.90 per ounce. Gold is up roughly 65% this year.
Safe-haven demand was further supported after US President Donald Trump ordered a blockade of sanctioned oil tankers entering and leaving Venezuela, increasing pressure on President Nicolas Maduro’s government.
Other metals
Platinum climbed 2.2% to $1,890.60 per ounce, its highest level in more than 17 years, while palladium rose 2% to $1,635.61 per ounce.
US labor market
Recent data showed the US economy added 64,000 jobs last month, beating expectations, while the unemployment rate rose to 4.6%, its highest level since September 2021.
Signs of labor market softening have reinforced expectations that the Federal Reserve may continue easing monetary policy, a backdrop that typically supports non-yielding assets such as gold.
Last week, the Fed delivered its third quarter-point interest rate cut of the year. Markets are now pricing in two additional 25-basis-point rate cuts in 2026.
Supply and demand balance
Industrial demand accounts for more than half of global silver consumption. While demand from solar energy projects, particularly in China, is expected to slow after several strong years, this is likely to be partly offset by rising demand from electrification, power grid upgrades, and increased use of silver in automotive components, including hybrid and battery electric vehicles.
On the supply side, the silver market is facing a fifth consecutive year of deficits. Production remains structurally constrained, with roughly 70% to 80% of silver output produced as a by-product of other metals, limiting supply growth even at higher prices.
Mined silver output is estimated to be down about 3% this year due to declining ore grades and limited new project development. Despite risks from a potential global economic slowdown or sustained high prices, analysts expect silver prices to remain well supported, with average prices projected around $55 per ounce in 2026.
What to watch for
Investors are now focused on upcoming US inflation data, including the Consumer Price Index due Thursday and the Personal Consumption Expenditures price index scheduled for Friday.
