Silver prices continued their upward momentum this past Monday, rising more than 2% and closing in on the $37-an-ounce mark, extending a rally that has paralleled gold’s strong performance this year. Spot silver closed at $36.76 per ounce, up 2.2% on the day, after briefly reaching $36.90—the highest intraday price since February 2012. Silver futures followed closely, increasing by 2.1% to settle at $36.91 per ounce in New York trading. The rally comes as the U.S. dollar continues to weaken, providing a broad tailwind to precious metals. The softer dollar has increased the appeal of non-yielding assets like silver and gold, which tend to perform well when real interest rates fall or remain low.

Silver’s price movement has closely mirrored that of gold in 2025. With the latest gains, silver has now matched gold’s year-to-date increase of approximately 26%, making it one of the top-performing commodities so far this year. Gold, by comparison, ended Monday’s trading session 0.5% higher at $3,328.22 per ounce. Silver broke through the $36 level last week, a price not seen in over a decade, reinforcing the metal’s momentum in financial markets. The climb to $36.90 earlier on Monday marked a new 13-year high, and the metal continues to benefit from several converging factors: a weakening dollar, inflation concerns, expectations of lower U.S. interest rates, and growing demand from both industrial and investment sectors.

Unlike gold, which is largely viewed as a store of value and central bank reserve asset, silver also has significant industrial applications, including in electronics, solar panels, and medical devices. This dual role gives silver additional sensitivity to broader economic and manufacturing trends.

Outlook Hinges on Federal Reserve Policy

Market attention is now turning toward the upcoming U.S. Federal Reserve meeting, which analysts say could be a pivotal moment for precious metals markets. While the Fed has so far signaled a cautious approach to rate adjustments, any indication of an easing monetary stance could bolster silver and gold further, as lower interest rates tend to weaken the dollar and reduce the opportunity cost of holding non-interest-bearing assets.

Although gold remains the more expensive and traditionally less volatile of the two metals, silver’s price trajectory this year has been strikingly similar. The 26% year-to-date gain in both metals reflects renewed investor interest in hard assets amid macroeconomic uncertainty, trade concerns—particularly around the ongoing U.S.-China negotiations—and inflationary pressures.

Analysts note that silver, due to its smaller market size and greater price sensitivity, often exhibits more exaggerated movements compared to gold. This can result in both sharper rallies and more pronounced corrections. Silver’s current level places it just shy of its all-time high reached in April 2011, when it briefly traded above $49 per ounce. While prices remain well below that historical peak, the current rally marks the strongest silver market since early 2012. The combination of industrial recovery post-pandemic, global monetary easing, and heightened geopolitical risk has reignited interest in the metal after years of relatively subdued performance.

Investor Behavior and Sentiment

Investor flows into silver-backed exchange-traded funds (ETFs) have increased in recent months, contributing to the metal’s upward pressure. Analysts say these flows reflect both tactical bets on price appreciation and strategic shifts toward commodities amid broader concerns about equity valuations and bond yields.

Retail and institutional investors alike appear to be responding to silver’s lagging price relative to gold in recent years, viewing the metal as undervalued on a historical basis. The gold-to-silver ratio—a common metric for assessing the relative value of the two metals—has also tightened in 2025, reinforcing the perception that silver is catching up after an extended period of underperformance.

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.