At 12:21, XAG/USD is trading $32.22, up $0.17 or +0.54%.

Silver Rides Gold’s Rally but Faces Volatility Risks

Silver has been benefiting from gold’s surge, with spot prices recently touching $33.39—its highest since late October. The metal is up 14% so far in 2025, following a 21% gain in 2024, supported by strong demand in both precious and industrial markets.

While some analysts suggest silver could challenge its 10-year peak near $35, others are cautious. Silver has historically lagged behind gold and tends to be more volatile. The metal failed to match gold’s record-breaking run in 2024, leaving traders wary of sustainability in its recent move higher.

U.S. Tariffs and Market Spreads Drive Silver Demand

A key driver of silver’s recent strength is concern over U.S. trade policies. The threat of steep import tariffs, later delayed to March, has contributed to a spike in U.S. Comex silver futures. The March contract was last up 3.3% at $33.79.

At the same time, the premium between CME silver futures and London spot prices has widened, prompting significant inflows into COMEX-approved warehouses. CME silver stocks have jumped 22% to 375.8 million ounces since November, while London vault inventories fell 8.6% in January—the sharpest monthly decline on record. This shift has fueled speculation that silver’s supply chain is tightening, adding to bullish sentiment.

Silver’s High Volatility Raises Caution for Traders

Despite recent gains, silver’s volatility remains a concern. Historically, when gold makes a decisive move, silver’s price swings are often 2.0–2.5 times larger. In 2024, gold set 40 record highs, while silver failed to reach new peaks, leaving traders frustrated.