FX.co ★ Silver Erases Early Losses

Silver demonstrated significant volatility on Monday, reversing earlier declines of 5% to stabilize around the crucial threshold of $80 per ounce, edging closer to its historical peak amid ongoing geopolitical uncertainties. President Donald Trump announced that peace negotiations with Ukrainian President Volodymyr Zelenskiy have made "significant progress," though he noted that finalizing an agreement might still be several weeks away. President Zelenskiy mentioned that the overarching structure is mostly defined, with comprehensive agreements regarding US-Ukraine security guarantees, although pivotal matters, such as jurisdiction over the Donbas region, remain unresolved. Compounding these geopolitical tensions are persistent conflicts in the Middle East and escalating tensions between the US and Venezuela. Silver is projected to achieve an approximate 166% increase in 2025, driven by speculative investment inflows, continuing supply disruptions in the aftermath of an October short squeeze, purchases by central banks, ETF investments, and anticipated reductions in US interest rates, as markets are increasingly factoring in additional easing measures for 2026.