Currently, Silver has a market capitalisation of $4.04 trillion, surpassing Apple’s $4.02 trillion as of Tuesday’s closing on Wall Street.
Traders are of the view that the US Federal Reserve will continue to ease rates going into 2026, even as the Fed Dot Plot indicates room for only one rate cut. Hopes are high despite a strong GDP print for the third quarter, which showcases that the US economy continues to remain in firm footing.However, the market is hopeful as they believe that the next Fed Chair will be more dovish compared to Jerome Powell, and will align with US President Donald Trump’s view of lower interest rates.
Following a sharp short squeeze in October, Silver prices are on the upmove again as industrial demand and robust ETF inflows keep prices at elevated levels. Silver is a key component in the global supply chain, with use cases ranging from electronics, to solar panels, and even coating for medical devices.The 3-month implied volatility of iShares Silver Trust, the world’s largest silver ETF, reached the highest since early 2021. However, one measure of bullishness — the ratio of 3-month call to put volatility — slipped to the lowest level since mid October.
On the charts, the Relative Strength Index (RSI) for Silver stood at 80, which indicates that the precious metal is in “overbought” territory. An RSI reading above 70 means that the asset is “overbought”.
Last month, the amount of Silver kept in warehouses linked to the Shanghai Futures Exchange fell to the lowest since 2015.
Ahmad Assiri, a strategist at Pepperstone Group said that the rising prices have not put off the investors. “Instead of sellers stepping in aggressively, both gold and silver continue to attract buying into strength,” Pepperstone’s Assiri said. “This behavior suggests that $4,500 and $70 are being treated less as hard ceilings and more as reference points within ongoing trends, leaving both metals firmly supported for now and over the holidays,” he said.
(With Inputs From Agencies.)
