Spot Silver Surges Past $58 Per Ounce In Record-Breaking Rally

• Silver futures for March 2026 delivery climbed 1.4% on Monday.
• Spot gold prices rose to the highest since October 21.
• The dollar index fell back below 50-DMA for the first time since October 17.

Precious metals surged on Monday, with spot silver (XAG/USD) scaling record highs while spot gold (XAU/USD) reached its highest level since October 21.

On Monday, spot silver climbed above $58 per ounce for the first time. At the time of writing, it was up more than 3.1%. While there have been two separate pullbacks over the past month, spot prices continue to remain well above the 50-day moving average (50-DMA).

Silver prices are on track for a sixth straight session of gains. On Friday, the XAG/USD pair climbed past $55 an ounce for the first time, buoyed by a weak dollar as traders increased their bets on a potential Fed rate cut on December 10. Recent comments from top Fed officials, along with weaker post-shutdown economic data, have reinforced market expectations for a rate cut next month.

Data from the CME FedWatch tool showed an 87.4% probability of a 25-basis-point rate cut at the December 10 meeting. A week back, the figure stood slightly lower at 84.4%.

Silver futures maturing in March 2026 delivery climbed 1.4%, on track to gain for a seventh straight session.

Physical Silver Supply Challenges

According to veteran commodities expert and Head of Commodity Strategy for Saxo Bank, Ole Hansen, the current surge can be traced to a ‘historic tightening’ that began in London in October, the world’s primary hub for physical silver trading.

In a Saxo Bank report on Monday, Hansen noted that London vaults had steadily depleted in recent months as the metal shipped out to meet strong demand from the U.S. and India. This has led to a sharp decline in “free-float” inventory, in which the metal is not tied to exchange-traded funds (ETFs), leases, or industrial contracts. As availability decreased, the cost of borrowing, known as the lease rate, jumped sharply, putting pressure on traders.

Gold And The Greenback

Spot gold was up 0.5% at $4,237.5 per ounce on Monday, while gold futures for February 2026 delivery rose around 0.4%. The metal is trading well above its 50-DMA.

On the other hand, the dollar slid yet again, with the U.S. Dollar Index (DXY) falling back to its 50-DMA for the first time since October 17. 

It has declined in five of the last six sessions. The DXY measures the greenback’s strength against a basket of six key currencies: the euro, Japanese yen, pound sterling, Canadian dollar, Swedish krona, and Swiss franc. 

Over the past six months, silver prices have shot up more than 77%, significantly above spot gold’s near 30% gains.

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