Silver climbs to fresh 14-year high

Silver rose more than 1% to trade above $46.5 per ounce on Monday, hitting a fresh 14-year high as the US dollar weakened amid mounting fiscal and policy uncertainty.

Investors grew cautious ahead of this week’s key data releases—including the ISM surveys, payrolls, and the Fed’s preferred inflation gauge—which could sharpen expectations for the next policy moves. Rising concerns over a potential US government shutdown also weighed on the greenback, further supporting precious metals.

Friday’s PCE report showed inflation pressures holding steady, reinforcing the view that the Federal Reserve has scope to continue easing without reigniting price risks. Futures markets now price in about a 90% chance of a September rate cut and around 65% odds of another reduction in December, with bets also building that policy easing will extend into 2026 if labor market weakness persists.

Beyond monetary drivers, structural supply-demand imbalances remain a key pillar for silver’s rally. The Silver Institute projects a fifth consecutive annual market deficit in 2025, with demand expected to outstrip supply by more than 100 million ounces.

Robust consumption from solar panel production, electric vehicles, and electronics continues to draw down global inventories, keeping the physical market exceptionally tight. With both monetary easing and industrial strength aligned, analysts suggest silver could retain upward momentum even as gold trades more cautiously around its record highs.