Silver hits $70 an ounce for first time ever

Silver prices rose in European trading on Tuesday, extending gains for a third consecutive day and continuing to break record levels, reaching the $70-per-ounce threshold for the first time in history, amid strong demand for the white metal, particularly from retail traders.

The rally was also supported by a weaker US dollar in foreign exchange markets, weighed down by strong expectations that the Federal Reserve will cut interest rates twice next year.

Price overview

Silver prices today: silver rose 1.4% to $70.00 per ounce, marking a new all-time high, from an opening level of $69.05, after touching an intraday low of $68.92.

At Monday’s settlement, silver prices jumped 2.8%, marking a second consecutive daily gain and setting fresh record levels amid strong demand for precious metals.

US dollar

The dollar index fell 0.2% on Tuesday, extending losses for a second straight session and hitting a one-week low, reflecting continued weakness in the US currency against a basket of major and minor currencies.

As is well known, a weaker US dollar makes dollar-priced metals and commodities more attractive to buyers holding other currencies.

The decline comes amid increased dollar selling ahead of the Christmas and New Year holidays, and under pressure from cautious comments by some Federal Reserve officials highlighting growing concern over weakness in US labor market indicators.

US interest rates

According to the CME FedWatch tool, pricing for keeping US interest rates unchanged at the January 2026 meeting currently stands at 78%, while the probability of a 25-basis-point rate cut is priced at 22%.

Investors are currently pricing in two US interest rate cuts over the course of next year, while Federal Reserve projections point to only one 25-basis-point cut.

US economic growth

To reprice the above expectations, investors are awaiting later today the release of US third-quarter GDP data, which was delayed due to the US government shutdown.

The preliminary GDP reading is due at 13:30 GMT and is expected to show growth of 3.2% in the third quarter, compared with 3.8% growth in the second quarter.

Silver outlook

Tim Waterer, chief market analyst at KCM Trade, said that buyers continue to view precious metals as an effective tool for portfolio diversification and value preservation, adding that he does not believe gold or silver have reached their peaks yet.

Michael Brown, chief strategist at Pepperstone, said that some sideways movement could occur during the holiday period due to reduced market liquidity.

Brown added that the rally is expected to resume with strong momentum once trading volumes return to normal levels, noting that $5,000 is a natural target for gold next year, while $75 represents a long-term target for silver.