Silver surges to $62.50 as US Fed cuts rates by 25 bps -- what investors should note now
Despite the rally, some experts caution about possible price corrections. Jigar Trivedi, Senior Research Analyst at Reliance Securities, suggested that silver could pull back by 20-30% or more due to the steep rise.
- Dec 11, 2025,
- Updated Dec 11, 2025 2:03 PM IST
Silver prices climbed to an unprecedented peak of $62.50 per ounce in global markets on Thursday, December 11, marking a fresh all-time high as investor expectations of looser US monetary policy weakened the dollar and Treasury yields. The white metal’s rally accelerated following a key interest rate cut by the US Federal Reserve, which has energized demand and tightened supplies.
The Multi Commodity Exchange (MCX) in India mirrored this global surge, with futures contracts for silver reaching new record highs. Simultaneously, the COMEX in New York saw March silver futures climb after the Federal Open Market Committee (FOMC) cut its benchmark interest rate by 25 basis points to a target range of 3.50% to 3.75%. This marked the third consecutive rate cut, further signaling a shift toward more accommodative monetary policy that traditionally boosts precious metals by making the US dollar less attractive.
Market analysts attribute silver’s price surge not only to the Fed’s move but also to rising demand and shrinking visible inventories. The metal’s recent addition to the US Geological Survey’s list of critical minerals has further tightened supply chains, creating concerns of future trade restrictions. As a result, silver is attracting heavy inflows, particularly from investors expecting enduring industrial demand.
“The silver market is experiencing a strong wave of interest driven by anticipated demand in green technologies and industrial use,” said Fawad Razaqzada, market analyst at City Index and FOREX.com. “There’s a consensus that silver will be critical to key industries like solar energy, electric vehicles, and data centers for years to come, pushing prices higher.”
The Silver Institute reinforced this bullish outlook, citing sectors such as solar power, EV infrastructure, and artificial intelligence as major demand drivers well into the 2030s. This industrial strength adds a unique dimension to silver compared to other precious metals, making it both a sought-after investment and vital industrial commodity.
Ilya Spivak, head of global macro at Tastylive, noted, “Silver’s independent rally is quite remarkable—it hasn’t been much influenced by other market factors and continues its upward trend. The next psychological resistance level to watch is around $64 per ounce.”
What investors should note
Despite the rally, some experts caution about possible price corrections. Jigar Trivedi, Senior Research Analyst at Reliance Securities, suggested that silver could pull back by 20-30% or more due to the steep rise. He advised investors to wait for a modest 7-10% correction before entering the market, particularly if looking to invest via ETFs or futures.
At 11:46 IST Thursday, March contracts on COMEX traded near $62.11 per ounce, just off the record daily peak of $63.25. On MCX, the March silver contract reached Rs 193,453 per kilogram, an increase of 1.1%.
The upward momentum for silver is supported by its dual role: as a safe-haven asset during uncertain economic conditions and as a key industrial metal powered by the global energy transition. A softer US dollar and expectations of lower borrowing costs have further incentivized investors to pour capital into precious metals.
“A weaker dollar combined with lower interest rates reduces the opportunity cost of holding silver and gold, both non-yielding assets,” explained Ross Maxwell, Global Strategy Operations Lead at VT Markets. This dynamic, coupled with silver’s unique industrial applications, amplifies its price volatility and potential for further gains.
As global markets navigate uncertain economic waters, silver remains in the spotlight for its rare combination of investment appeal and essential industrial demand, making its recent record highs a significant milestone in 2025.
Silver prices climbed to an unprecedented peak of $62.50 per ounce in global markets on Thursday, December 11, marking a fresh all-time high as investor expectations of looser US monetary policy weakened the dollar and Treasury yields. The white metal’s rally accelerated following a key interest rate cut by the US Federal Reserve, which has energized demand and tightened supplies.
The Multi Commodity Exchange (MCX) in India mirrored this global surge, with futures contracts for silver reaching new record highs. Simultaneously, the COMEX in New York saw March silver futures climb after the Federal Open Market Committee (FOMC) cut its benchmark interest rate by 25 basis points to a target range of 3.50% to 3.75%. This marked the third consecutive rate cut, further signaling a shift toward more accommodative monetary policy that traditionally boosts precious metals by making the US dollar less attractive.
Market analysts attribute silver’s price surge not only to the Fed’s move but also to rising demand and shrinking visible inventories. The metal’s recent addition to the US Geological Survey’s list of critical minerals has further tightened supply chains, creating concerns of future trade restrictions. As a result, silver is attracting heavy inflows, particularly from investors expecting enduring industrial demand.
“The silver market is experiencing a strong wave of interest driven by anticipated demand in green technologies and industrial use,” said Fawad Razaqzada, market analyst at City Index and FOREX.com. “There’s a consensus that silver will be critical to key industries like solar energy, electric vehicles, and data centers for years to come, pushing prices higher.”
The Silver Institute reinforced this bullish outlook, citing sectors such as solar power, EV infrastructure, and artificial intelligence as major demand drivers well into the 2030s. This industrial strength adds a unique dimension to silver compared to other precious metals, making it both a sought-after investment and vital industrial commodity.
Ilya Spivak, head of global macro at Tastylive, noted, “Silver’s independent rally is quite remarkable—it hasn’t been much influenced by other market factors and continues its upward trend. The next psychological resistance level to watch is around $64 per ounce.”
What investors should note
Despite the rally, some experts caution about possible price corrections. Jigar Trivedi, Senior Research Analyst at Reliance Securities, suggested that silver could pull back by 20-30% or more due to the steep rise. He advised investors to wait for a modest 7-10% correction before entering the market, particularly if looking to invest via ETFs or futures.
At 11:46 IST Thursday, March contracts on COMEX traded near $62.11 per ounce, just off the record daily peak of $63.25. On MCX, the March silver contract reached Rs 193,453 per kilogram, an increase of 1.1%.
The upward momentum for silver is supported by its dual role: as a safe-haven asset during uncertain economic conditions and as a key industrial metal powered by the global energy transition. A softer US dollar and expectations of lower borrowing costs have further incentivized investors to pour capital into precious metals.
“A weaker dollar combined with lower interest rates reduces the opportunity cost of holding silver and gold, both non-yielding assets,” explained Ross Maxwell, Global Strategy Operations Lead at VT Markets. This dynamic, coupled with silver’s unique industrial applications, amplifies its price volatility and potential for further gains.
As global markets navigate uncertain economic waters, silver remains in the spotlight for its rare combination of investment appeal and essential industrial demand, making its recent record highs a significant milestone in 2025.