Silver wrapped the week ended 26 December 2025 on a strong note, rising 18.1% to $79.32 per ounce from an opening price of $67.16.
This performance marks silver’s best Christmas week on record, surpassing the 17.8% surge recorded in the week ended 20 July 2020, when prices climbed sharply as investors sought safe-haven assets during the COVID-19 crisis.
The metal has had an exceptional year in 2025, rising more than 174% year to date, with nine of the eleven months so far ending higher and a sustained bullish run extending from June into late December.
As of the week ended 26 December 2025, silver has outperformed gold, which has risen 72.7% year-to-date, with a recent move above $50 per ounce likely supporting the ongoing rally.
What price action is saying
Analysts say silver’s recent price surge has been driven by both technical and fundamental factors.
The recent break above the $50 mark, in particular, likely sparked a technical rally, supported by expectations of interest rate cuts and tightening supply in vaults and exchanges.
- Historically, $50 has been a strong resistance level for the commodity, with previous attempts to breach it in January 1980 and April 2011 failing to hold.
In mid-October 2025, silver briefly crossed $50, closing the week ended 13 October at $51.86. Investors, however, appeared to wait for a pullback to around $48.30 and confirmation of further upside before fully committing.
When silver broke the $50 resistance again in the week ended 24 November 2025, it likely triggered a strong rally, attracting more investors and extending into a five-week winning streak through the week ended 26 December 2025.
On the fundamental side, silver continues to benefit from robust demand in electric vehicles, solar energy, and semiconductor data centers, alongside tighter supply and the prospect of rate cuts.
Together, these factors have likely supported and sustained the rally, making silver one of the standout performers in 2025.
Favorable factors
UBS analyst Giovanni Staunovo says the prospect of lower U.S. interest rates, along with other market factors, is “supporting demand for gold and silver, lifting both metals to new highs.”
Silver has surged this year on the back of rate cuts, strong demand from AI data centers, tight supply, and tariff uncertainties.
Traders are expecting the U.S. Federal Reserve to cut rates twice in 2026, while calls for looser monetary policy from U.S. President Donald Trump are also supporting demand for precious metals, which do not yield a return.
Strong demand for silver, particularly since 2024, has further fueled investor interest and supported the rally.
Supply deficit
Industrial demand for silver reached 680.5 million ounces in 2024, up 4% from the previous year, marking a record high for the fourth consecutive year, according to the Silver Institute.
Growth was largely driven by structural gains in the green economy, including investment in grid infrastructure, vehicle electrification, and photovoltaic (PV) applications, while rising AI-related demand supported increased shipments in consumer electronics.
As a result, global silver demand outpaced supply for the fourth straight year, creating a structural market deficit of 148.9 million ounces in 2024.
Over the period from 2021 to 2024, the cumulative deficit totaled 678 million ounces—roughly equivalent to 10 months of global mine production in 2024.
