Silver surged past the $77 per ounce level for the first time on Friday, extending a powerful rally that has also pushed gold and platinum to fresh record highs.
The move has been driven by growing expectations of U.S. Federal Reserve interest rate cuts and heightened geopolitical tensions, both of which have reinforced safe-haven demand across the precious metals complex.
Spot silver jumped 7.5 percent to $77.30 per ounce during U.S. trading hours, after briefly touching an all-time high of $77.40 earlier in the session.
The metal has now posted a year-to-date gain of roughly 167 percent, underpinned by persistent supply deficits, its classification as a U.S. critical mineral, and sustained investment inflows.
Gold also extended its record-breaking run, with spot prices rising 1.2 percent to $4,531.41 per ounce after earlier hitting a new high of $4,549.71.
U.S. gold futures for February delivery settled 1.1 percent higher at $4,552.70, reflecting strong institutional demand.
Rate Cut Expectations and Dollar Weakness Support Prices
Market participants are increasingly positioning for looser U.S. monetary policy over the medium term, with expectations building for two Federal Reserve rate cuts in 2026.
The first reduction is widely anticipated around mid-year, amid speculation that U.S. President Donald Trump could appoint a more dovish Federal Reserve chair.
“Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets. While there is some risk of profit-taking before the year-end, the trend remains strong,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
The U.S. dollar index was on track for a weekly decline, which has made dollar-priced commodities more attractive to overseas buyers.
This currency dynamic has played a key role in amplifying the recent surge across precious metals.
Geopolitical Risks Add to Safe-Haven Appeal
Geopolitical developments have also contributed to the strong bid for safe-haven assets.
U.S. airstrikes against Islamic State militants in northwest Nigeria were confirmed by President Trump on Thursday, adding to broader concerns about global security risks.
Such events have historically boosted demand for gold and silver as investors seek protection from uncertainty.
Grant believes the rally may have further room to run, particularly in silver.
“$80 in silver is within reach by year-end. For gold, the next objective is $4,686.61, with $5,000 likely in the first half of next year,” he added.
Physical Demand Shows Mixed Signals
Despite the strong futures and spot market performance, physical demand trends have shown some divergence across key regions.
In India, gold discounts widened to their highest levels in more than six months this week as soaring prices dampened retail buying interest.
In contrast, discounts in China narrowed sharply from last week’s five-year highs, suggesting a stabilization in consumer demand.
Gold is now on track for its strongest annual gain since 1979, supported by Federal Reserve policy easing, heavy central bank purchases, inflows into exchange-traded funds, and continued de-dollarization efforts.
Platinum and Palladium Join the Rally
Other precious metals also posted dramatic gains during the week.
Spot platinum surged 9.8 percent to $2,437.72 per ounce after earlier hitting a record high of $2,454.12.
Palladium climbed 14 percent to $1,927.81, marking its highest level in more than three years.
All major precious metals recorded weekly gains, with platinum registering its strongest weekly increase on record.
