At the start of the week, the silver price rallied to a fresh all-time high at $117.86 as precious metals continue with the steady bullish trend recorded in 2025. Notably, the session’s intraday gains were the highest since the global financial crisis in 2008.
Amid the persistent geopolitical and economic uncertainties, heightened investment demand and a weaker US dollar has fueled the fresh silver price surge. However, the low gold/silver ratio points to a corrective pullback in the short term. Besides, financial markets are eyeing January’s Fed meeting.
Rare gold/silver ratio points to a looming pullback
Silver price surged by about 150% in 2025; surpassing gold’s historic rally. This bullish trend has continued into the new year as the white metal benefits from its dual role as a safe-haven asset and crucial industrial metal.
Since the start of the year, it has risen by close to 60%. However, it is showing some signs of exhaustion with the technicals suggesting that the rally is nearing its end.
The gold/silver ratio plunged further below 50 on Monday before easing slightly on Tuesday. Notably, that is its lowest level since 2012. This indicates that silver price is trading at its highest level in 14 years relative to gold price. Even with the optimism over its steady industrial demand, the decline suggests a bubble in the silver market.
In addition to the gold/silver ratio, investors will also be keen on the January Fed meeting. After months of division amongst the Fed officials, a steadier US labor market is expected to bring some consensus. As such, financial markets expect the central bank to pause on its interest rate cuts. What’s more, concerns over the Fed’s independence may override the year’s first interest rate decision.
SLV silver price technical analysis
The iShares Silver Trust ETF hit a fresh record high on Monday before showing some signs of exhaustion. After extending its gains past $100 for the first time ever, SLV silver price pulled back to end the trading session at $98.34.
However, a look at the silver bullion points to a rebound in the near term. Earlier on Tuesday, silver price erased most of losses recorded in the previous session. At the time of writing, the silver bullion was trading at $110.73; slightly below the record high hit on Monday at $117.86.
While the fresh price surge will likely attract more buyers, a healthy correction is expected in the near term. At an RSI of 81, the white metal is deep in the overbought territory. As the SLV ETF tracks the performance of the silver bullion, it’s set to follow its price path.
In the immediate term, the entry of more buyers may bolster SLV silver price back above the crucial zone of $100. However, at an RSI of 79, a corrective pullback is on the horizon. Based on these technical indicators, the range between the all-time high at $106.82 and the resistance-turn-support level of $93.20 is worth watching.
A further pullback would activate the lower support zone of $87.44. On the flip side, heightened bullish momentum may give the bulls a chance to refresh the all-time high towards a new high at $110.
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