Silver Poised for Highest Close Since 2011 on Further Rate Cut Expectations
Silver reached its highest daily levels since 2011 last Tuesday, before a minor correction took hold, which was deepened by the Federal Reserve's difficult-to-interpret policy decision. Today, Neel Kashkari, a Fed member, stated that he supported the recent rate cut and foresees two more moves this year. Although Kashkari is not a voting member this year, he will be in 2026. Miran also indicated that voting for a 50 basis point rate cut is appropriate to bring rates to a neutral level.
From a fundamental perspective, silver has been in a significant supply deficit for several years. In 2025, this deficit could exceed 200 million ounces, marking the eighth consecutive year of shortages. While silver recycling is high, growing investment demand could lead to a lack of supply for industrial applications. Currently, silver is primarily used in the photovoltaic sector, electric vehicles, electronics, and 5G technology.
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Create account Try a demo Download mobile app Download mobile appThe rise in gold prices is also driven by demand. Gold is being purchased by large investors as well as official bodies like central banks. Silver, being a more affordable option, is favored by smaller investors.
The gold-to-silver ratio is currently dropping to 86, while the 10-year moving average sits at 82. If gold were to return to $3700 or even reach $3800 per ounce, a drop in the price ratio to 82 would value silver at $45-$46 per ounce. While this would not be a record high for silver, it would be very close.
Today, there is a potential for silver to post its highest close since 2011. Today's gains are the largest in nominal terms since September 1. If silver were to reverse and correct, key support levels would be around $41.5 and $40 per ounce. Potential targets for silver are $43 and subsequently $45 per ounce. Source: xStation5This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
