NEW YORK, Jan 2, 2026, 07:29 ET — Premarket
- Spot silver was up more than 4% early Friday, with SLV higher in premarket trading.
- CME margin hikes and Fed rate-cut expectations remained key drivers after volatile year-end trade.
- Traders were looking ahead to next week’s U.S. payrolls report and other delayed economic releases.
Silver prices jumped more than 4% on Friday, snapping back from late-December profit taking as investors bought bullion on rate-cut bets and geopolitical worries.
U.S.-listed silver vehicles, including iShares Silver Trust (SLV), were indicated higher ahead of the open.
The rebound matters because silver has turned into a high-beta proxy for the market’s view on U.S. rates and the dollar after a record 2025 run. Small shifts in expectations can translate into outsized moves when liquidity is thin.
Friday also marks the first trading day of the year for many investors after the New Year’s Day holiday. That tends to concentrate repositioning into a narrow window.
Spot silver was up 4.6% at $74.52 an ounce by 11:02 a.m. GMT, after touching a record $83.62 on Monday, Reuters reported. “Bulls seem to be drawing strength from geopolitical risk and hopes of lower U.S. rates,” said Lukman Otunuga, senior research analyst at FXTM. Investors expect at least two quarter-point Fed cuts this year, and UBS analyst Giovanni Staunovo said he targets $5,000 an ounce for gold in 2026, Reuters said. Reuters
Lower rates tend to support non-yielding metals because they compete against cash and bonds. Another key input is real yields — the inflation-adjusted return on government bonds — which set the opportunity cost of holding bullion.
In currency markets, the dollar index was up about 0.2% at 98.39 after a 9.4% drop in 2025, its biggest annual fall in eight years, Reuters reported. Traders are fully pricing in two Fed cuts in 2026 and are watching President Donald Trump’s coming decision on a new Fed chair, with Jerome Powell’s term due to end in May. Reuters
SLV was up 4.8% in premarket trade at $67.55 after ending the last session at $64.42 on Dec. 31, down 6.6% on the day, according to Yahoo Finance data. Yahoo Finance
Among U.S.-listed miners, First Majestic Silver, Hecla Mining and Pan American Silver last closed down about 1.5%-1.7%.
Volatility remains a defining feature. CME Group has raised margin requirements on precious-metal futures after sharp swings, raising the cash traders must post to hold leveraged positions. MINING.COM
Policy has also fed the bullish narrative. The U.S. government’s final 2025 list of critical minerals added silver, underscoring its industrial role and supply-chain importance. Federal Register
Traders are now looking to next week’s U.S. data for confirmation on the rate path. The Labor Department is scheduled to release the December employment report on Jan. 9, a key test for bullion if it shifts expectations for cuts. Bureau of Labor Statistics
