Silver prices rose to $51.24 per ounce on Thursday, setting a new record and surpassing the peaks reached in 1980 and 2011. The advance reflects stronger safe-haven demand, expectations of further central-bank easing, and renewed concern over the US government shutdown, while the crypto market hovered over $100 billion below its highest recorded value of close to $4.27 trillion.
As of Friday 01:45 UTC, spot gold traded near $3,980 per ounce, slightly below its record set on Wednesday, while slipped below $122,000 as investors rotated between traditional and digital hedges. The original had slipped to about $121,300 at 06:20.
Most of the uptrend reflects safe-haven appeal amid an extended US government shutdown, delays to key macroeconomic releases, persistent geopolitical tensions, and rising expectations of Federal Reserve rate cuts. In such periods, market participants typically increase exposure to precious metals such as gold and silver.
Fed rate-cut bets strengthen
According to CME FedWatch data, markets now price in two rate cuts by December, with an 81.7 percent probability that the federal funds rate will fall to 3.50 – 3.75 percent from the current 4.00 – 4.25 percent range. The repricing follows softer US economic data and dovish language in recent Federal Reserve minutes, which pointed to moderating inflation and a cooling labour market.
Attention now turns to the Nonfarm Payrolls report once released, along with Friday’s University of Michigan consumer sentiment and inflation expectations surveys, expected to clarify labour-market trends and wage pressures. A weaker outcome could strengthen the case for faster easing, while a stronger print may temper expectations for rate reductions.
Market impact and broader outlook
Record highs in precious metals underscore a wider rotation toward hard assets as confidence in stability softens. The rally has also prompted portfolio shifts in digital markets, with Bitcoin consolidating as traders reduce exposure to volatility.
Silver’s technical outlook remains constructive as the precious metal's spot price is testing resistance around $51, with the next Fibonacci extension targets seen near $54.54 (200% Fib) and $62.17 (241.4% Fib) in the longer run. Though overbought signals on daily charts may prompt short-term profit-taking. For crypto investors, conditions and interest-rate expectations remain key drivers of near-term direction as risk sentiment continues to track Federal Reserve policy and macro releases.
