Saad Ullah
Silver (XAG/USD) is on an absolute tear right now, smashing through to fresh 13-year highs of $36.42 per troy ounce and showing no signs of slowing down. The shiny metal's been ripping higher for three straight sessions as traders pile in on Fed rate cut bets and global uncertainty fears.
Silver (XAG/USD) Absolutely Crushes $36 Level on Fed Rate Cut Madness
Holy cow, silver is going absolutely bonkers right now! XAG/USD just blasted through the $36 level like it was nothing, hitting those juicy 13-year highs that have everyone talking. We're looking at three consecutive sessions of pure dominance, and honestly, this thing looks like it's got more room to run.
So what's driving this insane rally? Well, everyone's getting pretty spooked about the global economy and trade drama, which means they're diving headfirst into safe-haven plays like silver. It's textbook stuff – when the world looks scary, people buy shiny things, and silver's been the absolute star of the show.
The real catalyst came when Citigroup dropped their bombshell Fed predictions on Monday. These guys are calling for 25 basis point cuts in September, October, AND December, plus another 25 basis points each in January and March 2026. That's a whole lot of rate cutting action, and for non-yielding assets like silver, it's like someone just poured gasoline on a fire. When rates go down, precious metals become way more attractive since you're not missing out on those juicy bond yields.
XAG/USD Getting Whipsawed by Mixed U.S. Data and Trump-Xi Trade Drama
But here's where things get super interesting for silver (XAG/USD) – the data's all over the place right now. While Citi's calling for all these rate cuts, we just got some absolutely killer U.S. jobs numbers on Friday that are making people think the Fed might actually pump the brakes on cutting rates at their next meetings. Talk about mixed signals!
And then there's all this wild trade stuff happening. Trump just had this epic hour-and-a-half phone call with Xi Jinping on Thursday, and he's saying it went "very positive" for both countries. That's got markets pretty pumped about maybe getting some better trade vibes going.
The real action's happening today though – Trump's bringing out the big guns with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer all meeting their Chinese counterparts in London. If these talks actually go somewhere good, it could totally mess with silver's safe-haven bid since better trade relations would mean less reason to hide out in precious metals.
Silver (XAG/USD) Getting Massive Support from Supply Crunch and Solar Demand
But here's the thing that's really got silver bulls excited – the fundamentals are absolutely sick right now. The Silver Institute just dropped some mind-blowing numbers showing global silver supply was 15% short of demand in 2024. That's not just a little deficit, that's a massive shortage, and they're saying 2025's gonna be another deficit year.
A huge chunk of this demand is coming from the solar energy boom, where silver's basically irreplaceable for making those panels work. Every single solar panel needs silver for its electrical magic, and with everyone going crazy for green energy, that industrial demand just keeps exploding higher and higher.
This whole supply-demand situation is creating the perfect recipe for higher silver prices. You've got industrial users battling it out with investors for the same limited silver supply, and when you add in all the economic craziness and Fed rate cut fever, it's no wonder XAG/USD is absolutely destroying these 13-year highs. The big question now is whether silver can actually hold onto these levels or if we're gonna see some serious profit-taking as traders cash in their chips from this incredible run. Either way, it's been one hell of a ride for anyone holding silver right now!
Saad Ullah
