Silver Climbs to Record High as Gold Eyes Weekly Gains on Federal Reserve Rate Cut Bets
December 19, 2025 — Silver prices surged to a record high on Friday, driven by strong investment demand and ongoing supply constraints. Meanwhile, gold showed steady gains and appeared poised to log a weekly increase amid growing market expectations that the U.S. Federal Reserve will cut interest rates in the near future.
Spot silver jumped 2.3% on Friday to $66.96 an ounce, marking an impressive 8.1% gain for the week. During the trading session, silver reached an all-time peak of $67.20 per ounce. Gold also advanced, with spot prices rising 0.3% to $4,346.69 an ounce and U.S. gold futures adding 0.4% to $4,380. Gold is on track to record a weekly gain exceeding 1%.
Market experts note a shifting dynamic in the precious metals market. “Gold and silver prices are typically highly correlated with gold leading; however, over the past two months, silver has taken the lead,” said Michael Matousek, head trader at U.S. Global Investors. “Such a wide spread tends to incite investors to focus on gold and tighten their positions in the short term.”
Year-to-date, silver has outperformed significantly, soaring approximately 132%, compared to gold’s 65% rise. This substantial silver rally has been fueled by a combination of strong investment demand, especially through exchange-traded funds (ETFs), and a shortage in physical supply. Phillip Streible, chief market strategist at Blue Line Futures, explained, “ETF flows continue to dominate the investment theme in silver, alongside speculative activity from retail investors.”
Supporting the metals’ rally are encouraging macroeconomic indicators hinting at potential Federal Reserve easing. The latest U.S. consumer price index (CPI) data for November showed inflation rising 2.7% year-over-year, below economists’ forecast of 3.1%. Additionally, the U.S. Labor Department reported an unemployment rate increase to 4.6% for November, the highest since September 2021. These figures underscore a slowing economy, bolstering expectations for interest rate cuts.
“We have seen lower inflation data coupled with a weakening labor market report,” Streible remarked. “This reinforces the idea that the Federal Reserve will continue on a path toward monetary easing, which is one of the primary drivers behind the precious metals rally. Moreover, ongoing uncertainty regarding central bank policies also adds to market support for these assets.”
Market participants are currently pricing in at least two quarter-point (25 basis points) interest rate cuts by the Fed next year, according to data from LSEG.
Other precious metals followed suit with gains on Friday. Platinum climbed 3.2%, reaching $1,977.85 an ounce after touching a 17-year high in the previous session. Palladium advanced 0.4% to $1,701.75, having hit its highest level in nearly three years earlier in the day. Both metals are set for weekly increases as well.
The surge in silver and gold reflects broader market sentiment favoring safe-haven and inflation-hedging assets amid expectations of a more accommodative monetary policy environment in the U.S. Investors will be closely watching upcoming economic data and Federal Reserve communications for further signals on the policy outlook.
Related Coverage
- U.S. Inflation Data Signals Cooling Price Pressures
- Labor Market Shows Signs of Softening, Raising Rate Cut Odds
- Platinum Hits Multi-Decade High Amid Strong Demand
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