Silver Smashes All-Time Highs While Gold Eyes $4,600 Target on Jobs Data

TLDR

• BMO Capital predicts gold could reach $4,600 per ounce by Q1 2026, driven by safe-haven demand and global economic uncertainty
• Silver hit an all-time high of $66.52 per ounce on Wednesday, gaining 128% this year on tight supply and strong industrial demand
• U.S. unemployment rose to 4.6% in November, the highest since September 2021, boosting expectations for Fed rate cuts
• Gold has climbed 65% year-to-date, reaching $4,318.99 per ounce, supported by dovish Federal Reserve policy expectations
• Platinum reached its highest level in over 17 years at $1,927.35, while palladium hit a two-month high at $1,638.96

Gold and silver prices continued their historic rallies on Wednesday as weaker U.S. employment data strengthened the case for additional Federal Reserve interest rate cuts in 2026. BMO Capital Markets released new forecasts showing gold could breach $4,600 per ounce as early as the first quarter of next year.

Spot gold rose 0.4% to $4,318.99 per ounce by 1015 GMT. U.S. gold futures gained 0.4% to $4,348.10. The precious metal has climbed 65% year-to-date, far exceeding analyst expectations from a year ago.

Silver stole the spotlight with a 3.3% surge to $65.91 per ounce. The metal touched an all-time high of $66.52 earlier in the session. Silver has gained 128% this year, outpacing all other precious metals.

The November U.S. jobs report showed nonfarm payrolls increased by 64,000 positions. The unemployment rate rose to 4.6%, marking its highest level since September 2021. The softer labor market data fueled speculation about more aggressive Fed rate cuts next year.

Federal Reserve Rate Cut Outlook

The Federal Reserve delivered its third quarter-point rate cut of 2024 last week. Chair Jerome Powell’s comments were viewed as less aggressive than some market participants expected. Traders are currently pricing in two 25-basis-point cuts during 2026.

Non-yielding assets like gold typically benefit in low-interest-rate environments. Lower rates reduce the opportunity cost of holding precious metals that don’t generate income. Helen Amos, a BMO Capital analyst, noted that gold’s resilience after October’s sell-off demonstrates its continued appeal as a safe haven asset.

BMO Capital described the current environment as “Supercycle 2.0” in its 2026 Metals & Bulk Commodity Price Year Ahead report. The bank attributed this cycle to deglobalization and supply frictions. The firm stated it was too early to fade the metals rally despite the strong year.

Chinese retail demand for gold remains robust. This demand reinforces gold’s role as a store of value during periods of global uncertainty. Monetary and fiscal easing policies worldwide continue to support safe-haven buying.

Silver Supply Dynamics Drive Price Surge

Independent analyst Ross Norman said silver has become a target for options market speculation. He pointed to positive demand outlook fundamentals driving the speculative interest. Silver qualifies as a critical mineral under green energy programs.

Supply dynamics for silver remain tight across the market. The metal plays a key role in solar panels and other renewable energy technologies. Speculators are taking advantage of these favorable supply-demand conditions.

BMO Capital expressed more caution about silver and platinum in the near term. The bank stated these metals appear to have overshot their fundamentals recently. Gold remains the firm’s preferred precious metal for the first half of 2026.

Platinum jumped 4.2% to $1,927.35, reaching its highest level in over 17 years. Palladium added 2.2% to $1,638.96, a two-month high. Norman attributed the white metals sector surge partly to the EU potentially scrapping its 2035 combustion engine ban.

Markets are watching key U.S. inflation data this week. Consumer Price Index figures are due Thursday, with Personal Consumption Expenditures data releasing Friday. President Donald Trump ordered a blockade of sanctioned oil tankers entering and leaving Venezuela on Tuesday.

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