Silver prices slipped sharply on Friday after touching a historic high earlier in the session, as investors locked in profits following a strong multi-month rally. The pullback coincided with a steadier U.S. dollar and broader market caution ahead of key U.S. economic data.
Spot silver dropped almost 3% to $61.70 per ounce by mid-afternoon in New York, retreating from its record intraday level of $64.64 per ounce. Despite the decline, silver remains up nearly 5% for the week and an impressive 112% for the year. The metal’s surge has been supported by tightening inventories, persistent industrial demand, and its recent designation on the U.S. critical minerals list.
Analysts described Friday’s pullback as a natural cooling after an accelerated climb. Bart Melek, global head of commodity strategy at TD Securities, noted that a mild rebound in the U.S. dollar and a wave of profit-taking contributed to downward pressure on silver. Research firm CMZ cautioned that silver’s rapid price increase has become excessive, though it maintained a positive long-term outlook due to expected growth in industrial consumption.
Gold, meanwhile, advanced for a third consecutive session. Spot gold rose 0.3% to $4,293.43 per ounce after hitting its highest point since late October. U.S. gold futures finished 0.4% higher at $4,328.30. With the Federal Reserve delivering its third and final quarter-point rate cut of the year, investors are now watching incoming economic data closely—particularly the U.S. non-farm payrolls report due on December 16. Market expectations currently price in two additional rate cuts in the year ahead.
Lower interest rates generally support gold, as the metal does not yield interest. Melek forecast an average gold price of $4,213 per ounce for 2026, underscoring ongoing confidence in the metal’s long-term strength.
In the broader precious metals sector, platinum gained 2.6% to reach $1,740.05 per ounce—its highest level since 2011. Palladium also moved higher, rising 0.9% to $1,497.21. Both metals were on track for solid weekly gains, supported by strong industrial demand and supply constraints.
Market attention also remained focused on geopolitical developments. The United States is preparing further interceptions of tankers carrying Venezuelan oil, following a recent vessel seizure intended to increase pressure on President Nicolas Maduro’s government. The action has raised concerns about volatility in energy markets, which can indirectly influence precious metals trading.
Overall, while silver’s record-setting rally paused, analysts expect continued volatility driven by shifting monetary policy expectations and global economic signals.
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