Silver’s rise in the last few sessions has overshadowed gold, with prices hitting yet another record high on Thursday.
Experts believe the correction in silver prices has ended, and the current rally has more room to run.
Silver prices on COMEX have risen more than $6 since last week, and were trading at a record high of $54.210 per ounce on Thursday.
This week alone, silver prices have surged 12% so far, and more gains have been anticipated.
The metal was supported by growing expectations of Federal Reserve rate cuts following weak US labor data last week.
Additionally, the reopening of the US government also raised hopes that the restart of economic data releases would pave the way for more interest rate cuts by the Fed.
Commodities such as gold and silver tend to benefit when interest rates are lower, as they are unyielding assets unlike Treasury bills.
“Supply concerns also fueled the rally, driven by strong seasonal demand from India’s wedding season and possible US tariffs on silver imports,” Ajay Kedia, founder and director of Kedia Capital Services.
Additionally, the US Department of the Interior’s decision to classify silver as a “critical mineral” raised speculation about future trade restrictions, further tightening the market outlook.
Gold/Silver ratio
Gold futures have climbed more than $200 in the last four trading sessions and reclaimed the psychological level of $4,000 per ounce.
While gold’s move is noteworthy on its own, it is dwarfed by the spectacular performance of silver.
“The pattern in question is known as ‘Three White Soldiers,’ a bullish reversal formation consisting of three consecutive long-bodied candlesticks with minimal shadows,” Kitco.com’s Gary S. Wagner, technical market analyst, said in a report.
However, the most compelling development may be observed in the gold/silver ratio, which is a measure of how many troy ounces of silver are needed to buy one troy ounce of the yellow metal, Wagner said.
The gold-to-silver ratio, which hit a five-year peak above 107 in April—a level that suggested silver was historically undervalued compared to gold—has subsequently fallen for seven straight months, losing 36% of its value.
Wagner said:
This week alone, it has plummeted over 5% to 78.60, and our analysis suggests substantially more downside remains.
According to Kitco’s Wagner, the gold/silver ratio could fall to as low as 65 in the longer term, while in the short term it may hover in the low 70s.
Upside momentum builds
The market has issued a powerful and clear rebuke to the bearish consensus.
Furthermore, contrary to the conventional belief that a government shutdown resolution would hurt safe-haven assets, the market has overlooked this near-term distraction to focus instead on deeper structural bullish catalysts.
Finally, the dramatic outperformance now visible in silver confirms Kitco’s analysis, which identified its potential for strength independent of the crowd’s view that it would merely follow gold.
“For traders and investors seeking exposure to what may prove the defining precious metals trade of Q4 2025, the message is unambiguous: the correction has ended, the rally has resumed, and silver’s leadership suggests this move has considerable room to run,” Wagner said.
Silver has shown positive upward momentum since reaching the neutral level, a move that followed a period of being significantly overbought last month.
“But, as with gold, some traders seem suspicious of the current rally and feel that silver may have further to fall,” said David Morrison, senior market analyst at Trade Nation.
It’s also worth considering, however, that gold and silver are not inextricably linked.
Morrison concluded:
Both are capable of doing their own thing, as was seen back in 2011 when they both hit record highs but with a six-month gap.
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