- As silver hits new record highs, here is the short-term silver price predictions for the day.
The Fed rate decision is the standout event for the day. The responses seen on the various asset classes is a product of current Fed expectations, which is a 25 bps rate cut. However, the forward guidance for monetary policy in 2026 will determine the short-term price action in gold, silver, global stocks and USD-FX pairs.
Silver is the big story in London trading. The white metal is now in its seventh straight month of gains. It has absolutely been on fire and has outperformed gold in 2025. A break of the $60 per ounce price for the first time has sent it into record territory. What’s powering this move?
- Tailwinds from the expectations of a 25 bps rate cut at the end of the Dec 10 Fed meeting.
- Persistence of multi-year supply deficits, amid slow replacement by mining due to the byproduct nature of a large portion of silver supplies.
- Strong industrial demand, especially for electronics, solar and EV-related multiples.
- Stockpiling due to US policy around security of supplies, which has increased market sensitivity to Section 232/tariff risks.
Mining stocks in the UK are rallying as a result.
The current rally is a perfect play of macro winds meeting momentum. A dovish guidance for 2026 by the Fed could sustain the uptrend’s momentum, but beware of price swings especially during the Fed Chair’s press conference.
The current weekly chart indicates strong bullish structure marked by higher highs and higher lows. However, the steepness of the momentum move to the upside also raises the risk of an equally sharp pullback.
Above 59.3, a dip-buying cycle will maintain the uptrend move. Targets to the north is 66.24, the 200% Fibonacci extension of the March 2020 – August 2020 price swing.
Below 48.12 (100% Fibonacci extension) and 3 November low, additional downside target reside at 41.20 and 34.89, the 61.8% and 27% Fibonacci extension levels.
Disclaimer: The setups above are not recommendations to buy or sell any asset at any price. This is not financial advice but merely an educational piece. The decision to buy or sell any asset lies with you after consulting with your financial advisor.
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