Silver (XAGUSD) is taking a breather on Monday following a relentless rally. The precious metal broke through an all-time high of $80 in early morning trading, although it wasn’t able to sustain the gains and is now down by over 8%.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Silver is still up by 170% year-to-date, driven by safe-haven demand, mining disruptions, and China announcing that it would restrict exports of the metal starting on January 1, 2026.
What’s Happening with Silver?
Tesla (TSLA) CEO Elon Musk has warned that China’s export restrictions will pose challenges given that it is “needed in many industrial processes.” In addition, the restrictions could disrupt global supply chains and squeeze supply that is already tight. Silver has many industrial applications and is used in semiconductors, antennas, circuit boards, and electric vehicles.
Another factor driving silver is lower interest rates. The Fed has cut rates by 75 bps this year, with many analysts expecting 50 bps of further easing in 2026.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.