Spot silver jumped nearly 4% to $66.22 an ounce, having touched an all-time high of $66.88 earlier in the session. Analysts say silver’s rally is being fueled in part by investment rotation from gold into other precious metals.
“Silver is pulling gold up with it… there is some rotational money going out of gold and into silver, platinum, and palladium,” said Marex analyst Edward Meir. “$70/oz for silver looks to be the next logical target in the short term.”
Spot gold gained 0.7% to $4,334.01 an ounce by 1:56 p.m. ET (18:56 GMT), after rising over 1% earlier in the day. U.S. gold futures settled 1% higher at $4,373.90. Year-to-date, silver has surged 129%, significantly outpacing gold’s 65% gain.
Economic indicators are supporting the precious metals rally. U.S. labor data released on Tuesday showed a stronger-than-expected jobs increase of 64,000 last month, but the unemployment rate rose to 4.6%, the highest since September 2021. Weakness in the labor market increases the likelihood of interest rate cuts, which typically benefit non-yielding assets like gold and silver.
“Markets continue to see the Federal Reserve cutting its interest rates two times during the first part of 2026, which could continue to support gold over that period,” said Bas Kooijman, CEO of DHF Capital S.A. Last week, the Fed delivered its third and final quarter-point rate cut of the year, with investors now pricing in two additional 25-basis-point cuts in 2026.
Market participants are awaiting upcoming inflation data, including November’s Consumer Price Index on Thursday and the Personal Consumption Expenditures price index on Friday, for further signals on the Fed’s policy direction.
Geopolitical tensions also played a role in driving demand for precious metals. U.S. President Donald Trump ordered a “blockade” of sanctioned oil tankers entering and leaving Venezuela, in an effort to pressure President Nicolas Maduro’s government, which has further fueled safe-haven buying.
Other precious metals also advanced, with platinum rising 2.2% to $1,890.60, its highest level in more than 17 years, and palladium adding 2% to $1,635.61.
Investors and analysts are now closely watching whether silver can sustain its upward momentum and approach the $70 mark, while gold continues to benefit from a combination of potential Fed easing and geopolitical uncertainties.