Silver Prices Reach Record High Amid Market Disruptions and Monetary Policy Expectations

Significant Price Movement Following CME Disruption

Silver prices have achieved a new record high following significant operational disruptions at the Chicago Mercantile Exchange, owned by CME Group. The price of silver strengthened by 0.15% to US$56.514 per ounce as of November 29, 2025. This latest record surpasses the previous highest level reached during the London market stress in October.

Key Drivers of Price Increase

The surge in silver prices is primarily driven by two major factors: growing expectations of Federal Reserve interest rate cuts in December and increased investment in precious metal-backed exchange-traded funds (ETFs). These factors have created a favorable environment for precious metals, particularly silver, as investors seek safe-haven assets amid economic uncertainty.

Market Conditions and Trading Dynamics

The record price was achieved during a period of low trading volume on Black Friday in the United States, typically characterized by reduced market liquidity. The CME disruption earlier in the day had caused significant market volatility, with the bid-ask spread for gold widening substantially before most trading operations resumed.

Recent Market Developments

This new record comes just a month after a severe supply crisis in London's primary trading hub, which caused prices to surge above levels in Shanghai and New York. Although the arrival of nearly 54 million troy ounces has eased some of the pressure, the market remains highly constrained with one-month metal borrowing costs above normal levels.

Market Outlook

The current market conditions suggest that silver prices may remain volatile in the near term, influenced by both monetary policy developments and market liquidity factors. The expected Federal Reserve rate cut continues to be a significant driver, potentially maintaining the upward pressure on precious metals prices.