Silver surged past $65 per ounce for the first time on Wednesday, driven by softer US labor market data that bolstered expectations of further interest rate cuts in 2026 and boosted demand for precious metals.
Spot silver rose 3.2% to $65.80 an ounce after reaching an all-time high of $65.99 during the session. Spot gold also gained, rising 0.5% to $4,322.93 an ounce.
US gold futures saw a similar uptick, climbing 0.5% to $4,352.60.
The surge in silver prices has been fueled by what analysts are calling a major short squeeze, with speculative trading driving up the price.
Market experts noted that demand for silver is outpacing supply, especially after the US added silver to its critical minerals list. They predicted that the price could reach $70.00 in the near term due to growing demand from sectors like data centers and AI.
The rally followed a report showing that the US unemployment rate had risen to 4.6% in November, surpassing expectations and adding to the growing sentiment that further rate cuts could be on the horizon. The weaker labor market has raised concerns about the broader economy, prompting investors to seek safer, non-yielding assets like precious metals.
Brian Lan, managing director of GoldSilver Central, emphasised that the decline in the dollar and rising inflation expectations have made gold and silver attractive as hedges against risk.
Investors are now awaiting key US economic data, including the Consumer Price Index and Personal Consumption Expenditures index, which will be released later this week.
The Federal Reserve’s recent quarter-point rate cut and the more dovish tone from Chair Jerome Powell have reinforced expectations of additional rate cuts in 2026, further strengthening the outlook for gold and silver. Precious metals typically perform well in low-interest-rate environments, making them increasingly attractive to investors.
