Silver prices rose to $68.88 per troy ounce on Monday, up by 2.49% from $67.21 on Friday. Since the start of the year, Silver’s price has climbed by 138.41%.
On Monday, the Gold/Silver ratio dropped to 64.06 from Friday’s 64.57. For smaller quantities, the price of one gram of Silver is $2.21.
Factors Influencing Price
Factors influencing Silver prices include geopolitical unrest and recession fears. Lower interest rates and currency fluctuations, particularly the strength of the US Dollar, also play a role.
Silver is heavily used in industries such as electronics and solar energy. A rise in industrial demand boosts prices, while a decline can lower them.
Silver prices often mirror those of Gold, as both are considered safe-haven assets. The Gold/Silver ratio serves as an indicator for valuing these metals against each other.
With silver having already surged 138% since the beginning of the year, we should expect heightened volatility. The current price of $68.88 is a new high, suggesting strong momentum is in play. Derivative traders should be prepared for wide price swings in the coming sessions.
Federal Reserve and Market Expectations
The Federal Reserve’s dovish turn is a major catalyst for this rally. We are seeing market expectations solidify around rate cuts in early 2026, with Fed funds futures now pricing in a near 90% chance of a cut by March. This backdrop of lower future interest rates makes holding non-yielding assets like silver more attractive.
A weakening U.S. dollar, which recently fell below 95 on the DXY index, provides another tailwind. Since silver is priced in dollars, a weaker greenback makes it cheaper for foreign buyers, boosting demand. This trend is likely to continue as long as the Fed signals monetary easing.
Geopolitical tensions are also supporting prices as a safe-haven asset. The ongoing situation in the Middle East is adding a risk premium to precious metals. We saw a similar flight to safety during the geopolitical flare-ups back in 2022 and 2024.
Industrial demand remains a critical, and perhaps underappreciated, part of the story. The International Energy Agency just upgraded its 2026 solar installation forecast by 15%, which directly increases the consumption outlook for silver. We’ve seen holdings in major silver ETFs increase by over 20% in the last quarter, reflecting this dual investor and industrial appeal.
For option traders, the high implied volatility presents an opportunity. Selling out-of-the-money puts can generate significant premium for those bullish on the metal or willing to buy it on a dip. Conversely, buying call spreads can offer a risk-defined way to participate in further upside while offsetting some of the high premium costs.
The Gold/Silver ratio has dropped to 64.06, showing silver’s recent outperformance. Historically, we have seen this ratio fall even further during precious metal bull markets, sometimes approaching the 50-level. This suggests that silver may still have more room to run relative to gold.
