Silver (XAG/USD) continues to grind higher, trading near $63.75 in the Asian session on Friday and moving toward a potential retest of its all-time high. The rally remains supported by firm industrial demand, sustained weakness in the US Dollar (USD), and silver’s recent inclusion on the US government’s list of critical minerals.
Growing consumption from key technology industries is providing a strong tailwind. Analysts at Saxo Bank highlight that expanding demand across solar PV, electric vehicles (EVs) and related infrastructure, as well as data centers and artificial intelligence (AI), is likely to drive industrial use of silver through 2030.
Momentum also improved after the US Department of the Interior classified silver as a critical mineral, raising the prospect of the metal being factored into future tariff measures. Anticipation of policy changes has already prompted heavy inflows of silver into US warehouses ahead of any tariff decision expected next year. This surge in domestic deliveries has created a supply imbalance between the US and global markets, tightening availability elsewhere and reinforcing long-term demand expectations.
Meanwhile, the Federal Reserve cut interest rates by 25 basis points on Wednesday, lowering the federal funds target range to 3.50%–3.75%. According to the CME FedWatch Tool, markets now assign nearly a 78% probability that the Fed will hold rates steady at the next meeting, up from around 70% before the decision. Lower US interest rates typically pressure the Dollar, making silver more appealing to international buyers and adding support to XAG/USD.
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