Silver Prices Jump To Near Record Highs, Gold Continues To Glitter - Here's Why

Silver prices extended their winning streak for the fifth straight session on November 13, surging close to record highs as investors rushed toward safe-haven assets.

On the Multi Commodity Exchange (MCX), the December silver contract jumped up to Rs 3,727 to Rs 1,65,818 per kilogram, while the March 2026 contract rose as much as Rs 3,945 to Rs 1,68,635 per kilogram. On the Comex, silver futures for December delivery advanced 1.79 per cent to $54.41 per ounce to hover near the all-time high of $54.86 hit on October 16.

Meanwhile, gold prices too continued to glitter. December gold futures on the MCX rose as much as 1 per cent to hit an intraday high at Rs 1,27,798 per 10 grams. On Comex, December gold futures rose up to 0.76 per cent to day's high at $4,245.60 per ounce.

Why Silver Price Is Increasing

The rally came after US President Donald Trump signed a funding bill to officially end the longest government shutdown in American history, which had lasted 35 days. The white metal also drew support from growing expectations that the US Federal Reserve may adopt a more accommodative stance in the coming months.

Weak US private labor data strengthened expectations of a Fed rate cut as the payroll processor ADP Employment Change report on November 11 indicated an average weekly job loss of 11,250 in the four weeks to October 25. However, the probability of a December rate cut has slipped slightly to 53.90 per cent from 67 per cent a day ago, the CME FedWatch Tool showed.

Prathamesh Mallya, DVP Research, Non-Agri Commodities and Currencies at Angel One, said, “Silver prices are higher as it is added to the US Geological Survey 2025 list of critical minerals, which can boost industrial consumption, and can disrupt global supply chain and create tight physical markets.”

Commenting on the upcoming US Fed meeting on December 9-10, Mallya noted, “The narrative in the US is that the economy is slowing down, and the labor market is in a poor state, which might prompt the US Fed to lower the interest rates further, and if that happens, the rally in silver might be fast in the weeks ahead. Volatility will be the flavour for precious metals in the coming months.”

Kaynat Chainwala, AVP, Commodity Research at Kotak Securities, attributed the surge to multiple factors, including a softer dollar, falling Treasury yields, and the addition of silver to the US Department of the Interior’s “critical minerals” list.

“Silver surged to a record $54.37 per ounce, rallying over 10 per cent so far this week, supported by a softer US dollar and falling US Treasury yields,” Chainwala said. “The latest leg of the rally came after a Fed official suggested a possible restart of bond purchases to maintain control over short-term interest rates, a move that could further weaken yields and make silver more attractive as a safe-haven and non-yielding asset.”

She added that the “bullish sentiment was already reinforced by the potential end of the US government shutdown soon, which would restart economic data releases likely to confirm a slowdown, increasing the odds of further rate cuts.”

Will Silver Keep Shining

Looking ahead, Mallya added that while the rally has been strong, it may not last indefinitely. “Silver has rallied higher for most of 2025, and there is a possibility of a sharp correction soon, as no asset can rally higher for infinity. Timing the correction is something that is difficult for investors,” Mallya said.

Chainwala said silver may continue to trade with a bullish bias, supported by Fed dovishness, potential bond purchases, and safe-haven demand amid economic or political uncertainty.