Silver prices fall after reaching a record high above $80 per ounce.

Silver Retreats Sharply After Historic Surge Above $80

December 29, 2025 · By sheploocloud@gmail.com · In Crypto analysis

Silver Drops More Than 6% After Hitting Record High Above $80 an Ounce

Silver prices fell sharply by more than 6% in European trading on Monday, retreating from a historic rally after the metal briefly surged above $80 per ounce for the first time ever during Asian trading hours.

The decline reflects an acceleration in profit-taking and corrective selling following last week’s record-breaking gains, as investors locked in profits after silver’s rapid ascent.

Price Action Overview

Silver prices today: Silver fell 6.4% to $74.28 per ounce, down from an opening level of $79.33, after earlier touching an all-time high of $83.97.
Friday’s close: Prices jumped 10.5%, marking the fifth consecutive daily gain and the largest single-day rise since September 17, 2008.
Weekly performance: Silver posted a weekly gain of more than 18%, its fifth straight weekly advance and the strongest weekly increase on record.

Silver Slides Sharply After Blasting Past $80 to a New Record

The recent surge has been driven by silver’s designation as a strategic U.S. critical mineral, tight global supply conditions, declining inventories, and rising industrial and investment demand.

Stronger US dollar puts pressure on silver prices.

U.S. Dollar Weighs on Prices

Additional pressure on silver came from a modest rebound in the U.S. dollar. The dollar index rose 0.1% on Monday, extending gains for a third straight session as it recovered from a two-and-a-half-month low.

The rebound was fueled by year-end position adjustments and short-covering activity, even as the dollar remains on track for its largest annual loss since 2017.

Geopolitical Developments Reduce Safe-Haven Demand

Silver also faced headwinds from easing geopolitical tensions after signs of progress toward peace talks between Russia and Ukraine.

Following a recent meeting between former U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy, expectations rose that negotiations could advance toward ending the conflict.

Trump stated after the meeting in Florida that both sides “want to reach an agreement,” adding that discussions had entered a sensitive and advanced stage.

Federal Reserve Outlook in Focus

Markets remain closely focused on U.S. monetary policy expectations. According to the CME Group FedWatch Tool, traders currently price an 82% probability that the Federal Reserve will keep interest rates unchanged at its January 2026 meeting, with an 18% chance of a 25-basis-point rate cut.

Investors are currently pricing in two rate cuts over the course of 2026, while Federal Reserve projections point to just one cut of 25 basis points.

Attention now turns to the release of the Federal Reserve’s meeting minutes on Tuesday, which are expected to provide clearer signals on the future path of U.S. interest rates.

Easing geopolitical tensions reduce safe-haven demand for silver.

Outlook for Silver Prices

Tim Waterer, Chief Market Analyst at KCM Trade, said that a combination of interest rate cuts, sustained industrial demand, and continued supply constraints could set the stage for further gains.

“Lower interest rates, alongside strong industrial demand and limited supply, could pave the way for silver to move toward the $100-per-ounce level in 2026,” Waterer said.

Disclaimer:
This article is provided for informational purposes only and does not constitute investment advice, financial recommendations, or an offer to buy or sell any financial instrument. Commodity prices, including silver, are subject to market volatility and may fluctuate due to economic, political, and financial factors. Readers should conduct their own research or consult a qualified financial advisor before making any investment decisions.