FX.co ★ Silver Pulls Back on Profit-Taking

On Wednesday, silver prices experienced a significant decline, dropping over 5% to $72 per ounce. This sharp pullback followed some end-of-year profit-taking by investors. During 2025, silver had seen a remarkable surge, temporarily exceeding $80 per ounce, spurred by tight supply conditions and low inventory levels. Over the year, silver emerged as a standout in the commodities market, gaining 162% in value and outpacing many leading stock indices and currencies. Moving forward, experts predict that silver will continue to gain from strong industrial and investment demand, particularly if US interest rates decline in 2026. Tim Waterer, Chief Market Analyst at KCM Trade, noted the persistent interest in metals from both retail and institutional investors. He also highlighted that structural factors, such as strategic importance and supply limitations, are likely to bolster the market, despite short-term setbacks.