According to FXStreet data, the price of silver rose to $81.78 per troy ounce on Monday, showing an increase of 5.54% from Friday’s price of $77.48. Since the start of the year, silver prices have increased by 15.04%.<\/p>\n
The Gold\/Silver ratio on Monday was 61.43, down from 63.93 on Friday, indicating changes in relative valuation between the two metals. Silver’s appeal as a investment is due to its historical use as a medium of exchange and store of value.<\/p>\n
Various factors such as geopolitical instability, interest rates, and the strength of the US Dollar can influence silver prices. Moreover, industrial demand plays a role, especially in electronics and solar energy, reflecting its utility in these sectors.<\/p>\n
Silver prices generally follow Gold’s trends since both are considered safe-haven assets. A high Gold\/Silver ratio might indicate undervaluation of silver, whereas a low ratio might suggest silver is relatively overvalued. This interrelationship affects investment strategies related to these precious metals.<\/p>\n
We are seeing remarkable strength in silver, which has pushed past $81 an ounce with a year-to-date gain of over 15%. This powerful upward trend confirms strong buying pressure in the market. The momentum suggests that any price dips in the short term will likely be met with new buyers.<\/p>\n
This rally is largely being fueled by a weakening US Dollar and the market’s growing belief that the Federal Reserve will adopt a more dovish stance. Despite the January 2026 inflation report showing a higher-than-expected reading of 3.8%, Fed funds futures are now pricing in a 70% probability of an interest rate cut by July. This expectation of lower rates makes holding non-yielding assets like silver more attractive.<\/p>\n
We are also focused on the Gold\/Silver ratio, which has dropped to 61.43, clearly showing that silver is outperforming gold. Looking back at 2025, we saw this ratio trading consistently above 75, so the current level marks a significant shift in market preference. This trend supports derivative strategies that favor being long silver against being short gold.<\/p>\n
Underpinning this move is very strong industrial demand, which sets silver apart from gold. The latest data from the Electric Drive Transportation Association for the fourth quarter of 2025 showed a 12% year-over-year increase in silver offtake for use in electric vehicle components. This provides a solid fundamental floor for prices, separate from investment flows.<\/p>\n
In the options market, the pronounced price movement has pushed implied volatility on silver contracts to a 12-month high. This indicates that traders are preparing for even larger price swings in the weeks ahead. Given the clear upward trend, we believe buying call options or selling out-of-the-money put spreads are effective ways to participate in further upside while managing risk.<\/p>\n
The primary risk to this bullish view remains a sudden change in tone from the Federal Reserve, potentially triggered by this week’s US jobs report. An unexpectedly strong labor market could challenge the narrative of imminent rate cuts and cause a sharp, albeit likely temporary, pullback in the silver price. Therefore, we advise using defined-risk strategies to protect against this volatility.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Silver rises 5.54% to $81.78; Gold\/Silver ratio drops, reflecting increased demand and shifting market dynamics.<\/p>\n","protected":false},"author":62,"featured_media":16975,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-41343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/41343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=41343"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/41343\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16975"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=41343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=41343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=41343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}