Silver prices have been surging traction, following gold’s record-breaking rally. Recently, silver hit its highest level since late October, driven by similar factors that pushed gold prices higher. Analysts believe that if this momentum continues, silver could challenge its 10-year peak of nearly $35 per ounce.
Spot silver prices jumped 2% to $33 per ounce, reaching a peak of $33.41. This surge comes after silver lagged behind gold for most of 2024. Some experts call silver the “Cinderella metal” because it often underperforms gold. However, recent technical breakouts suggest silver is catching up. If market conditions remain favorable, silver could test the key resistance level of $35.
Several elements have contributed to silver’s rise. One major factor is the sharp increase in U.S. Comex futures prices, triggered by fears of a trade war due to proposed U.S. import tariffs. Silver, known as both a precious and industrial metal, gained 14% in 2025 after a 21% increase in 2024.
Additionally, rising copper prices have supported silver's upward movement. London copper prices hit their highest in over three months, reinforcing silver’s strength. Furthermore, the growing gap between Comex gold futures and London spot prices has created more volatility in the silver market, attracting large inflows to COMEX-approved silver warehouses.
The uncertainty surrounding U.S. tariffs has impacted silver demand. CME silver stocks surged by 22% since late November when the U.S. initially announced tariffs on Mexican and Canadian goods. Though the tariffs were postponed until March, the market remains on edge.
Meanwhile, silver supply in London has tightened. According to the London Bullion Market Association (LBMA), silver vault holdings in London dropped by 8.6% in January. This marks the largest monthly decline since LBMA started tracking silver stocks in 2016. With supply shrinking, silver prices could remain elevated.
Despite silver’s strong rally, analysts remain cautious due to its high volatility. Historically, silver moves more aggressively than gold. For every decisive move in gold, silver's price fluctuation tends to be 2.0-2.5 times greater. Additionally, silver’s trading range has widened significantly. In 2024, prices fluctuated between $22 and $35, whereas in 2023, they moved between $19 and $27 within just a few months.
Another concern is industrial demand. Nearly half of silver's usage comes from industries, which could face pressure if trade tensions slow global economic growth. Moreover, potential delays in U.S. Federal Reserve rate cuts and sluggish growth in China may also affect silver’s trajectory.
Final Thoughts. Silver has been riding gold’s bullish wave, with prices nearing a 10-year high. However, volatility remains a significant risk. While technical factors point to continued upside, market uncertainties could influence silver’s direction in the coming months.
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Silver prices surge, following gold’s rally, with analysts predicting a potential 10-year high. Learn more about silver’s outlook.
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