Created
: 2025.11.20












2025.11.20 00:02
Silver (XAG/USD) rises firmly on Wednesday, up 2.10% on the day to $51.90 at the time of writing, supported by renewed safe-haven flows as global sentiment shifts into risk-off mode.
The grey metal benefits from a widespread weakness across global Equities, prompting investors to reduce risk exposure. Concerns about stretched valuations in the technology sector, along with heightened uncertainty ahead of Nvidia's earnings later in the day, are reinforcing demand for defensive assets such as Silver.
Caution prevails as markets await the Federal Open Market Committee (FOMC) Minutes, due later in the day, which should provide additional clarity on policymakers' reluctance to commit to a December rate cut. While the Federal Reserve (Fed) delivered a 25-basis-point reduction in October, several officials have since expressed doubts about further easing amid persistent inflation risks and softening but resilient labour-market conditions.
This uncertainty is amplified by the delayed September Nonfarm Payrolls (NFP) report, now expected on Thursday. Recent labour indicators point to weaker momentum. The ADP Employment Change showed a modest contraction in private payrolls, while the backlog of weekly Jobless Claims has continued to build. Together, these signals reinforce a cooling trend in the US jobs market, although not yet enough to guarantee additional Fed cuts.
According to the CME FedWatch tool, the chance of a December rate cut has fallen sharply over the past week, reflecting traders' recalibration of the policy outlook. This shift limits the downside in the US Dollar (USD) but has not been sufficient to curb safe-haven demand for precious metals. For Silver, the combination of geopolitical caution, weaker Equity markets and fragile labour data continues to offer broad support.
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply - Silver is much more abundant than Gold - and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals - more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers' demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
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Created
: 2025.11.20
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Last updated
: 2025.11.20
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