Silver prices in the spot market hit an all-time high of $60.05 per ounce on Tuesday, supported by a deepening market deficit and steadily rising demand for the white metal.

Silver continues to rank among the world’s best-performing assets in 2025. Its price has nearly doubled since the start of the year, with some datasets showing gains between 100% and 102%, far outpacing gold’s roughly 60% advance.

What is driving silver prices today?

1. Fed rate-cut expectations dominate the landscape

The Federal Reserve begins its final policy meeting of 2025 today (December 9), with the rate decision due tomorrow. Futures markets continue to point strongly toward another 25-basis-point cut — the third this year.

Tools such as CME FedWatch show probabilities between 85% and 90% for a quarter-point cut, according to multiple market reports and analyses today.

Signs of a cooling US labor market and softer core PCE inflation have strengthened expectations for a clearer Fed easing cycle.

Lower interest rates and declining real yields reduce the opportunity cost of holding non-yielding assets like gold and silver.

Analysts warn that a strongly dovish message could trigger further upside breakouts, while a hawkish surprise could send silver sharply lower into the mid-$50 range.

2. Softer dollar and persistent economic uncertainty

Silver’s rally is also supported by renewed weakness in the US dollar and persistent geopolitical uncertainty:

The US dollar index is declining again, helping lift both gold and silver in European and US trading.

Geopolitical tensions — particularly in Eastern Europe — and concerns over US foreign-policy direction have boosted demand for safe-haven assets, with silver benefiting from its dual role as both an investment and industrial metal.

3. Structural supply deficit and booming industrial demand

Beyond short-term Fed dynamics, silver’s surge is underpinned by powerful fundamental drivers:

The market is facing its fifth consecutive annual supply deficit, with industrial demand outstripping mine production.

Global exchange inventories remain tight, with emergency flows into the London market earlier this autumn offering only temporary relief.

Shanghai Futures Exchange inventories have dropped to their lowest silver stockpile in a decade, highlighting the fragility of available supply.

Industrial demand is experiencing a broad-based boom across clean-energy and high-tech sectors:

Silver is essential for solar panels, electric-vehicle electronics, 5G networks, data centers, and advanced semiconductors.

Analysts note that expected long-term growth in the solar-power sector alone could drive structural increases in silver demand throughout the next decade.

Recent coverage shows the metal has doubled from its start-of-year levels, breaking historic resistance zones between $50 and $55, hitting new highs above $59, and even touching intraday peaks above $61 per ounce.

Copper prices fell on Tuesday, pulling back from Monday’s record highs as US stockpiling triggered a wave of selling, while China’s renewed commitment to prioritizing domestic growth in 2026 supported demand expectations.

On Monday, London Metal Exchange copper futures jumped as much as 1.3% to reach $11,771 per tonne, surpassing the all-time high set in the prior session.

Copper has been rallying in recent weeks as large volumes of the metal flowed into the United States in anticipation of broader tariff measures, raising concerns over a tightening global supply backdrop.

The latest surge followed China’s announcement — as the world’s largest consumer of copper — that it will maintain a “proactive” fiscal stance in 2026, lifting expectations for stronger industrial metals demand.

Shu Wanqu, an analyst at Cofco Futures, said:

“Data from the Politburo points to a more supportive macro backdrop than markets expected. Copper stands to benefit from government backing for grid-upgrade projects and expanding computing capacity. Momentum remains strongly bullish.”

This bullish view is reinforced by tightening supply in refined copper due to active stockpiling in the US. Analysts at Citic Securities estimate the global refined copper deficit could reach 450,000 tonnes next year.

Citic analysts added in a note that copper prices will likely need to average above $12,000 per tonne next year to attract the mining investment necessary to secure adequate supply over the medium to long term.

Copper prices on the LME have climbed 34% since the start of the year, supported by robust demand from data centers and electric-vehicle manufacturing, along with global supply tightening after several mine shutdowns.

In the United States, Comex copper ended July at a record high amid expectations of new tariff measures.

Meanwhile, the US dollar index rose 0.2% to 99.2 by 15:15 GMT, after hitting a high of 99.3 and a low of 98.9.

During US trading hours, March Comex copper futures fell 2.2% to $5.34 per pound as of 15:05 GMT.

Bitcoin slipped on Tuesday as investors remained cautious ahead of the Federal Reserve’s policy meeting, which begins later today, with markets widely expecting an interest-rate cut.

The world’s largest cryptocurrency fell 0.5% to $90,479 by 09:23 ET (14:23 GMT), staying confined to a narrow $90,000–$92,000 range after a mild pullback at the start of the session.

Caution ahead of the Fed decision

Signs of consolidation dominated Bitcoin’s price action, with traders reluctant to open new positions before the release of key macroeconomic signals.

Markets continue to price in a roughly 87% probability of a 25-basis-point cut at the Fed’s December 9–10 meeting, supported by a stream of softer US data in recent weeks, including a cooling labor market and slower inflation—even if it remains above target.

However, policymakers remain divided on the outlook for growth and inflation, leaving room for a potential surprise should the Fed opt to leave rates unchanged.

A rate cut would typically weaken the dollar and reduce yields on cash and fixed-income assets, making non-yielding alternatives such as Bitcoin more attractive. Much of Bitcoin’s rebound since late 2024 has been fueled by expectations of a prolonged easing cycle.

Strategy acquires 10,624 additional Bitcoin

Nasdaq-listed Strategy — the largest publicly traded company using Bitcoin as a reserve asset — announced Monday that it purchased an additional 10,624 BTC, bringing total holdings to roughly 660,624 Bitcoin.

The purchases were made between December 1 and 7 at an average price of about $90,615 per coin.

The move comes even as the company faces possible exclusion from major equity benchmarks such as MSCI indexes — a development that could trigger significant outflows and add pressure to its stock valuation.

Crypto prices today: Altcoins under pressure

Most major altcoins weakened on Tuesday amid broader risk aversion.

Ethereum fell 1.2% to $3,113.66.

XRP, the third-largest token, dropped 1.6% to $2.06.

Oil prices slipped slightly on Tuesday, extending the previous session’s 2% decline as traders monitored developments in peace negotiations aimed at ending the Russia-Ukraine war, alongside a highly anticipated US interest-rate decision.

Brent crude futures fell 8 cents, or 0.1%, to $62.41 a barrel by 04:09 GMT, while West Texas Intermediate dipped 13 cents, or 0.2%, to $58.75.

Both benchmarks had dropped more than a dollar on Monday after Iraq restored output at Lukoil’s West Qurna-2 field, one of the world’s largest.

Priyanka Sachdeva, senior market analyst at Phillip Nova, said: “Brent’s move back toward $62 aligns closely with December’s broader pattern. The noise around potential Iraqi supply disruptions faded overnight, bringing the market’s focus back to abundant supply and cautious demand expectations.”

Ukraine is set to present a revised peace plan to the United States following talks in London between President Volodymyr Zelensky and the leaders of France, Germany, and the UK.

Tim Waterer, chief market analyst at KCM Trade, noted: “Oil is trading in a tight range as the market waits for clarity on the peace talks. If negotiations collapse, we expect prices to rise. But if progress is made and there’s a possibility of more Russian supply returning to global markets, prices could come under pressure.”

According to informed sources, the G7 and the European Union are discussing replacing the current Russian oil price cap with a complete ban on maritime services — a move intended to curb Moscow’s oil revenues.

Investors are also focused on Wednesday’s Federal Reserve policy decision, with markets pricing in an 87% chance of a 25-basis-point rate cut.

Although rate cuts typically support oil demand by lowering borrowing costs, analysts cautioned that the impact may be limited in the current environment.

Sachdeva added: “While markets are fixated on a potential 25-basis-point Fed cut — which could offer mild short-term support within the $60–65 range — the broader price structure remains tied to expectations of an oversupplied market in 2026.”