Silver prices continued to decline after reaching an all-time high earlier in the week, as traders took profits from a rally that had begun to show signs of overheating. Similarly, gold prices experienced a dip.
Silver fell below $57 an ounce, having lost more than 2 percent in the previous session, effectively ending an eight-day winning streak. This recent pullback means silver has moved out of the overbought zone after its rapid rise to nearly $59 on Wednesday. According to the 14-day relative strength index, prices dropped beneath the 70-mark, which indicates that momentum has possibly surged too quickly.
This year, silver has approximately doubled in value, with the rally accelerating over the last two months attributable to a historic squeeze in London. However, this squeeze has lessened in recent weeks as more metal has been transported to the world’s largest silver trading center. Meanwhile, other markets are facing supply constraints, with Chinese inventories nearing their lowest levels in a decade.
The surge in silver prices has also been bolstered by increasing expectations that the U.S. Federal Reserve will lower interest rates during its upcoming meeting. Swap contracts now imply a near-certain probability of a rate cut, which would favor non-yielding precious metals. These forecasts remained resilient even in the wake of recent U.S. employment data showing that jobless claims have dropped to a three-year low.
As of 9:20 a.m. Singapore time, silver was down 0.4 percent, trading at $56.8850 an ounce. Gold saw a 0.3 percent decrease, now priced at $4,197.11, while both platinum and palladium also fell. The Bloomberg Dollar Spot Index remained unchanged after a 0.1 percent rise in the previous session.
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Published on December 5, 2025.
