Wedoany.com Report-Dec.18, Spot silver advanced significantly on Wednesday, reaching a new all-time high above $66 per ounce for the first time. The metal climbed as much as 4% to $66.50 per ounce before easing slightly. Over the recent month, silver has gained approximately 30%, supported by ongoing supply constraints and anticipation of additional U.S. interest rate reductions.

Gold also moved higher, increasing 0.6% to around $4,330 per ounce. It had briefly touched $4,350 earlier in the session, remaining about $30 below its peak from October.

"Silver is pulling gold up with it," said Marex analyst Edward Meir, who views $70 as a potential near-term level for silver.

Recent U.S. economic indicators highlighted a moderating employment environment, with the unemployment rate rising to 4.6%—the highest since September 2021. This development has increased expectations for further monetary policy easing in 2026, generally favorable for assets that do not generate yield, such as precious metals.

The U.S. Federal Reserve implemented its third rate reduction of the year last week, and market participants now anticipate two additional cuts in 2026.

"Markets continue to see the Federal Reserve cutting its interest rates two times during the first part of 2026, which could continue to support gold over that period," Bas Kooijman, CEO and asset manager of DHF Capital.

Heightened U.S.-Venezuela relations, following President Donald Trump's directive for measures affecting sanctioned oil tankers entering and leaving the country, contributed to increased interest in assets considered reliable during periods of uncertainty.

Throughout the year, precious metals have shown strong performance. Gold has advanced substantially, on track for its most significant annual gain since 1979, while silver has roughly doubled in value.

These movements reflect a combination of factors, including industrial demand for silver in sectors like renewable energy and electronics, persistent supply challenges, and broader economic signals influencing investor sentiment. Lower interest rates typically enhance the appeal of non-yielding holdings by reducing the opportunity cost compared to interest-bearing alternatives.

The labor market data, indicating softer conditions, aligns with central bank efforts to balance growth and inflation objectives. As global demand for silver continues in applications such as solar panels and electric vehicles, alongside traditional investment flows, the metal's dual role as both an industrial commodity and a store of value remains prominent.

Market observers note that while short-term volatility is possible, the underlying trends—supply deficits, industrial needs, and policy expectations—provide ongoing support for elevated prices in the precious metals complex. Investors monitor upcoming economic releases and policy statements for further direction.