Silver ($XAG) Commodity Forecast: Down 5.2% Today

What is Silver?

Silver, a precious metal known for its industrial and investment demand, experienced a significant bearish movement today amidst a year of remarkable performance.

Why is Silver going down?

XAG commodity is down 5.2% on Dec 31, 2025 12:15

• Silver fell over 5% to $72 per ounce as investors engaged in profit-taking, retreating from recent record highs, showcasing the volatility of the precious metal market.
• Despite the pullback, silver has surged over 150% year-to-date, outperforming other assets, driven by factors such as supply constraints, low inventories, and strong demand from both retail and institutional investors.
• The market movement was influenced by profit-taking activities, geopolitical tensions, and the anticipation of further monetary easing by the US Federal Reserve in 2026, highlighting the complex interplay of factors shaping silver's price dynamics.
• Analysts foresee silver continuing to be supported by robust demand and structural factors, such as supply tightness and its strategic importance, indicating a potential for future resilience in the market despite short-term fluctuations.

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Silver Falls 5%, Still Posts Best Year Ever

Silver dropped more than 5% to $72 per ounce on Wednesday, retreating from a record high of $86.62 reached on Monday, as investors locked in year-end profits. Despite the pullback, the metal has surged more than 150% year-to-date, dramatically outperforming gold and positioning 2025 as its strongest year on record. Silver crossed several historic milestones this year, buoyed by its designation as a critical mineral in the US, persistent supply constraints, low inventories, and rising industrial as well as investment demand. Looking ahead, analysts expect silver to remain well supported by strong retail and institutional interest, its growing strategic importance, ongoing supply tightness, and expectations of further monetary easing by the US Federal Reserve in 2026.

Silver Pulls Back on Profit-Taking

Silver fell more than 5% to $72 per ounce on Wednesday, pulling back sharply from gains as investors cashed in on year-end profits. The metal recorded a notable rally in 2025, briefly exceeding $80 per ounce, underpinned by constrained supply and low inventories. Over the year, silver emerged as one of the strongest performing commodities, appreciating 162% and outperforming most major stock indices and currencies. Looking ahead, analysts anticipate that silver will continue to benefit from robust industrial and investment demand, particularly in the event of a decline in US interest rates in 2026. Tim Waterer, chief market analyst at KCM Trade, observed that both retail and institutional interest in metals remains robust, and that structural factors, including strategic significance and supply constraints, are expected to support the market despite short-term retracements.

Silver Surges After Profit-Taking Run

Silver climbed more than 6% to above $76 per ounce on Tuesday, rebounding sharply after an 8% selloff in the prior session that marked its steepest daily decline in over five years as profit-taking briefly overwhelmed the market. Geopolitical risks remained in focus, with tensions in the Russia–Ukraine conflict lingering following reports of a suspected Ukrainian drone incident near President Putin’s residence, even as negotiations continued with key issues unresolved. Separately, the US signaled the possibility of further action against Iran should its nuclear and missile programs advance. Despite the recent volatility, silver is still on track for a gain of roughly 200% this year, one of its strongest annual performances since 1979, underpinned by robust industrial demand, persistent supply constraints, sustained ETF inflows, central bank buying, and three US rate cuts, with markets increasingly pricing additional policy easing in 2026.

Silver Rises After Sharp Pullback

Silver rose 1.6% to $73 per ounce on Tuesday, stabilizing after a steep drop in the previous session, as traders adjusted positions following aggressive profit-taking. The rebound follows a sharp retreat from record highs above $80 an ounce, with holiday-thinned liquidity amplifying recent price swings. Monday’s selloff was amplified by the CME’s decision to raise margin requirements on silver futures, forcing leveraged traders to reduce exposure after prices became technically overstretched. Analysts noted that the decline reflected position unwinding rather than a shift in underlying demand. Despite near-term volatility, silver continues to find support from structural supply constraints and strong industrial demand, particularly from solar, electronics, and data center infrastructure. However, stricter margin rules may keep price gains measured in the short term.

Silver Erases Early Losses

Silver swung sharply on Monday, erasing earlier losses of 5% to return to the key level of around $80 per ounce, moving back toward its record amid geopolitical uncertainty. President Donald Trump said that peace talks with Ukrainian President Volodymyr Zelenskiy have seen “significant progress,” although a final agreement could take weeks. Zelenskiy noted that the framework is largely settled, with US-Ukraine security guarantees fully agreed, but key issues, such as control over the Donbas region, still need resolution. Adding to geopolitical risks are ongoing tensions in the Middle East and rising friction between the US and Venezuela. Silver is on track for roughly a 166% gain in 2025, supported by speculative inflows, lingering supply disruptions following an October short squeeze, central-bank buying, ETF inflows, and expectations of US rate cuts, with markets increasingly pricing in further easing in 2026.

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Silver Price History

29.11.2025 - XAG Commodity was up 7.0%

• Silver's bullish movement today can be attributed to the ongoing geopolitical uncertainty, with recent comments from political leaders and tensions in various regions driving safe-haven demand for the precious metal.
• The profit-taking pressure that caused a slight slide in silver prices earlier in the day was likely short-lived, as the metal quickly rebounded, showcasing the resilience of its upward trend.
• The overall positive outlook for silver, driven by factors such as speculative inflows, supply disruptions, central bank buying, and expectations of US rate cuts, continues to support its strong performance in the market.
• Despite occasional fluctuations, silver's upward trajectory in 2025, with significant gains and multiple record highs, reflects the enduring appeal of the metal as a valuable asset in times of economic and geopolitical uncertainty.

10.11.2025 - XAG Commodity was up 5.5%

• Silver soared to new record highs above $61 per ounce, driven by expectations of a Federal Reserve interest rate cut and tightening supply conditions. The ongoing supply squeeze, coupled with robust demand from key industries like solar energy and electric vehicles, contributed to the bullish momentum.
• Silver lease rates continued to climb, indicating a scarcity of physical metal and amplifying buying pressure. The structural deficit between mine production and consumption, along with heavy institutional demand and inflows into silver-backed ETFs, further fueled the rally.
• The market's focus on Chair Jerome Powell's remarks for clues on future rate cuts, as well as the uncertainty surrounding the 2026 outlook, added to the volatility. Any hawkish signals from the Fed or a sudden increase in mine output could potentially check the current upward trend in silver prices.

10.11.2025 - XAG Commodity was up 5.2%

• Silver surged to record highs due to a combination of factors, including expectations of a Fed rate cut, increased industrial demand from sectors like solar panels and electric vehicles, and a structural deficit in mine production versus consumption.
• The market movement was further fueled by visible draws in benchmark stocks, constrained availability in key markets like London, and significant inflows into silver-backed ETFs, all contributing to a scarcity-driven rally.
• While a more hawkish signal from the Fed or a sudden uptick in mine output could potentially temper the gains, for now, the rally is primarily being driven by physical scarcity and robust institutional demand, highlighting the bullish sentiment surrounding Silver in the current market environment.

29.11.2025 - XAG Commodity was up 7.0%

• Silver slid over 3% today, likely due to profit-taking after a recent record high, geopolitical developments, and market expectations of US interest rate cuts.
• Despite the decrease, silver is still on track for significant gains in 2025, supported by various factors such as speculative inflows, supply disruptions, central bank buying, and market sentiment on future rate cuts.
• The recent volatility in silver prices can be attributed to a combination of geopolitical tensions, safe-haven demand, and investor concerns over currency debasement and global debt levels.
• Overall, the bullish trend in silver is driven by a structural supply deficit, strong industrial demand, and its status as a critical mineral in the US, amidst ongoing market uncertainties and expectations of monetary policy adjustments.

31.11.2025 - XAG Commodity was down 5.2%

• Silver fell over 5% to $72 per ounce as investors engaged in profit-taking, retreating from recent record highs, showcasing the volatility of the precious metal market.
• Despite the pullback, silver has surged over 150% year-to-date, outperforming other assets, driven by factors such as supply constraints, low inventories, and strong demand from both retail and institutional investors.
• The market movement was influenced by profit-taking activities, geopolitical tensions, and the anticipation of further monetary easing by the US Federal Reserve in 2026, highlighting the complex interplay of factors shaping silver's price dynamics.
• Analysts foresee silver continuing to be supported by robust demand and structural factors, such as supply tightness and its strategic importance, indicating a potential for future resilience in the market despite short-term fluctuations.

31.11.2025 - XAG Commodity was down 5.2%

• Silver fell over 5% to $72 per ounce due to profit-taking by investors, leading to a significant pullback from recent gains.
• Despite the retreat, silver had a remarkable year in 2025, appreciating 162% and outperforming major stock indices and currencies, supported by robust industrial and investment demand.
• Geopolitical tensions, such as the Russia-Ukraine conflict and US-Iran relations, added to market volatility, impacting silver prices.
• The market sentiment remains positive for silver, with analysts expecting continued support from structural factors like constrained supply and strong industrial demand, despite short-term retracements due to profit-taking and geopolitical uncertainties.

17.11.2025 - XAG Commodity was up 5.0%

• Silver reached an all-time high of $64.66 USD/t.oz, showing a notable 27.43% increase over the past 4 weeks and an impressive 120.36% rise in the last 12 months.
• The bullish trend was fueled by tightening inventories, strong industrial demand from sectors like solar, electric vehicles, and data centers, in addition to robust ETF inflows and retail buying.
• Profit-taking caused a slight dip below $63 per ounce as investors locked in profits post the record rally, with caution from analysts regarding stretched valuations compared to gold and potential impacts from US tariff exemptions.
• The Federal Reserve's rate cut and its less hawkish outlook offered medium-term support, while increasing lease rates and borrowing costs in London indicated ongoing delivery stress, underscoring the sturdy physical market conditions for silver.

17.11.2025 - XAG Commodity was up 5.1%

• Silver surged to new record highs around $66 per ounce, driven by a mixed US jobs report prompting investors to seek alternative assets for higher returns amidst risk management concerns.
• The metal's rally this year, up nearly 130% year-to-date, was supported by tightening inventories, robust retail and industrial demand, particularly from sectors like solar, electric vehicles, and data centers.
• Analysts cautioned about stretched valuations relative to gold and potential impacts from US tariff exemptions, but overall, the bullish sentiment was maintained by strong ETF inflows, retail buying, and expectations of a market deficit in the upcoming year.
• The Federal Reserve's rate cut and less hawkish outlook, along with ongoing delivery stress in physical silver markets, added to the factors influencing Silver's upward trajectory.

30.11.2025 - XAG Commodity was up 5.1%

• Silver rebounded by 1.6% to $73 per ounce, recovering from a recent sharp pullback due to profit-taking and increased margin requirements on silver futures. Despite near-term volatility, silver continues to be supported by structural supply constraints and robust industrial demand.
• Geopolitical uncertainty, including peace talks between the US and Ukraine, as well as tensions in the Middle East and Venezuela, have contributed to silver's price swings. President Trump's comments on progress in negotiations with Ukrainian President Zelenskiy added to market uncertainty.
• Silver's recent rally to a new high of $74.8 per ounce was driven by elevated investor sentiment, expectations of US interest rate cuts, concerns over global supply disruptions, and central bank purchases. The metal's significant gains have been fueled by speculative inflows and lingering supply disruptions, among other factors.

30.11.2025 - XAG Commodity was up 5.3%

• Silver surged over 6% today, rebounding strongly after a significant selloff in the previous session, driven by profit-taking and geopolitical uncertainties.
• The rebound in silver prices was supported by robust industrial demand, persistent supply constraints, and continued inflows into ETFs, despite holiday-thinned liquidity and stricter margin requirements impacting short-term price gains.
• Geopolitical risks, including tensions in the Russia-Ukraine conflict and the US signaling potential action against Iran, contributed to the market movement, highlighting silver's role as a safe-haven asset during uncertain times.
• Silver's impressive performance in 2025, with gains of around 166%, showcases its resilience amid market fluctuations and investor interest in precious metals as a hedge against global uncertainties.

11.11.2025 - XAG Commodity was up 5.1%

• Silver soared to new record highs above $61 per ounce as markets reacted to the Federal Reserve's interest rate cut and Chair Powell's dovish remarks, reducing the opportunity cost of holding the metal.
• The ongoing supply squeeze, driven by robust demand from industries like solar energy, electric vehicles, and data infrastructure, coupled with tightening physical market conditions, contributed to the rally in silver prices.
• Factors such as ETF inflows, spot buying, and structural industrial demand have fueled the surge in silver prices, while visible draws in benchmark stocks and constrained availability have amplified buying pressure.
• The combination of a dovish Fed stance, increasing industrial demand, and persistent supply deficits has created a perfect storm for silver, pushing it to all-time highs and highlighting the metal's value in a rapidly evolving global economy.

26.11.2025 - XAG Commodity was up 5.2%

• Silver surged to a new high, driven by ongoing geopolitical tensions and expectations of US interest rate cuts, boosting safe-haven demand.
• The rally was supported by concerns over disruptions in global supply, central bank purchases, and investor worries about currency debasement and rising global debt.
• Strong industrial demand, structural supply deficit, and silver's designation as a US critical mineral also contributed to its significant year-to-date increase of roughly 158%.
• Geopolitical developments, such as the US blockade on Venezuelan oil tankers, further reinforced silver's safe-haven status, while expectations of Federal Reserve easing and mixed economic indicators added to the bullish sentiment in the market.