Silver Falls 5%, Still Posts Best Year Ever

2025-12-31 07:33 By Joana Ferreira 1 min. read

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.



News Stream
Silver Pressured by Middle East Tensions
Silver traded below $75 an ounce on Wednesday after plunging more than 5% in the previous session, as escalating tensions between the US and Iran kept markets focused on inflation risks and the likelihood of higher interest rates. President Donald Trump warned that the US could resume strikes on Iran within “two or three days” if Tehran failed to accept Washington’s peace terms. The comments came shortly after Trump said he had canceled a planned attack following appeals from Gulf allies, while Iran’s nuclear program continued to be a key obstacle in negotiations. The prolonged conflict has effectively kept the vital Strait of Hormuz closed to shipping traffic, pushing oil prices higher and adding to inflationary pressures. Silver has also surrendered gains recorded earlier this month that were fueled by optimism surrounding AI-related stocks and stronger demand for metals used in data-center infrastructure.
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Silver is down by 5%
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Silver Drops on Middle East Uncertainty
Silver fell toward $74 an ounce on Tuesday, reversing gains from the previous session as heightened uncertainty in the Middle East and persistent inflation concerns weighed on sentiment. Markets reacted cautiously to President Donald Trump’s remarks hinting at possible progress toward a peace agreement with Iran, with investors remaining skeptical that a resolution to the crisis was near. Precious metals have been under pressure since the outbreak of the Middle East conflict, as surging oil prices intensified inflation fears and strengthened expectations for further central bank interest rate hikes. Rising US inflation has also prompted traders to further scale back expectations for Federal Reserve rate cuts this year, while increasing speculation that the Fed could still deliver a rate hike before year-end. Investors are now awaiting the latest FOMC minutes and flash US PMI readings for additional signals on the outlook for monetary policy and economic conditions.
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