Recent U.S. data indicates a moderation in inflation and a more flexible labor market, providing the Federal Reserve with greater leeway to ease monetary policy. Markets are anticipating two additional rate cuts next year. Lower interest rates typically support non-yielding metals like silver.
Geopolitical developments, including the intensification of U.S. sanctions against Venezuela and Ukraine's attack on a Russian-controlled tanker in the Mediterranean, have further reinforced silver's role as a safe-haven asset.
On the industrial side, demand remains robust, driven by growth in the solar energy, electric vehicle, and data center sectors. This strong demand underpins the long-term fundamentals for the metal.
Silver is on track for an impressive gain of nearly 140% in 2025.
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