Xinhua Finance, Shanghai, December 11 - In the morning session on December 11, driven by the Federal Reserve's expected 25 - basis - point interest rate cut, the spot price of silver continued its upward trend. The spot price of London silver stood above the $62 per ounce mark, hitting a new all - time high. As of press time, the spot price of London silver was reported at $62.56 per ounce, up 1.2% intraday. The highest intraday price reached $62.73 per ounce, and the year - to - date increase of the spot price of London silver exceeded 116%.
The futures market rose in unison. As of the time of writing, COMEX silver rose above $63 per ounce, reporting $63.07 per ounce, with a high of $63.14 per ounce, an increase of over 115% year-to-date, also setting a new historical high.
Gu Fengda, chief analyst of Guoxin Futures, told Xinhua Finance in an interview that the main driving forces behind the continuous innovation of silver prices in this round are two aspects. One is the increase in global financial allocation demand. When the US Federal Reserve cuts interest rates, the US dollar index returns to relative weakness, and precious metal-related financial products show a comprehensive net buying situation.
On the other hand, the demand for silver is increasing due to its industrial attributes. With the continuous boom of the AI industry and new energy, the market's expectation for future industrial demand for silver is increasing, leading to a phase bottleneck in supply. With the demand for silver becoming more elastic under the stimulation of multiple policies, the supply and demand gap in the fundamentals of silver is further expanding, attracting more capital to lay out in advance.
In addition, the relative catch-up of silver to gold is also a reason for its rise. From the perspective of the gold-silver ratio recovery, as of December 10th, the domestic gold-silver ratio has fallen below 70, and the foreign gold-silver ratio has also declined to 70 simultaneously. Compared with the gold-silver ratio of 80 a month ago and the full-year high point of around 105 in April this year, the domestic and foreign gold-silver ratios show a further recovery trend.
Xia Yingying, head of the precious metal and new energy research group at Nanhua Futures, analyzed and stated that the price elasticity of the silver supply side is low, coupled with the fragmentation of the global silver market, which has led to a decrease in the liquidity of silver inventories, making the silver price extremely sensitive to changes in demand. The global silver deliverable inventory has clearly shrunk at present. Driven by rigid industrial demand and strong investment demand, the squeeze situation often appears, thus promoting the rapid rise of silver prices.
But after the volatility of silver increased, short-term operations become more difficult, and most analysts advised investors to be cautious and avoid chasing the market. If the Fed's interest rate cuts, macro data, or exchange risk control policies deviate from expectations, it could trigger violent fluctuations. It is recommended to pay attention to the rhythm of market sentiment, control positions, and respond flexibly to fluctuations.
On the evening of December 10th, the Shanghai Futures Exchange issued a notice to adjust the margin requirements and price limits for silver futures related contracts: starting from the close settlement on December 12th, 2025 (Friday), the price limit for the silver futures AG2602 contract will be adjusted to 15% (from the current standard of 14%), the margin requirement for arbitrage position trading will be adjusted to 16% (from 15%), and the margin requirement for general position trading will be adjusted to 17% (from 16%).
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