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Silver Trades Around $50.50 Amid Conflicting Fed Messages and Rising Industrial Demand

Silver Trades Around $50.50 Amid Conflicting Fed Messages and Rising Industrial Demand

Bitget-RWA2025/11/21 13:56
By:Bitget-RWA

- Silver prices hover near $50.50 as Fed rate-cut uncertainty clashes with surging industrial demand from solar and EV sectors. - Fed officials' conflicting signals—Philip Jefferson's caution vs. Christopher Waller's dovishness—create policy ambiguity for markets . - Industrial demand grows at 4.5% annually, driven by China's solar targets and Germany's green infrastructure, while UBS warns of structural supply deficits. - UBS forecasts $53 by year-end 2025, citing thin liquidity and macro risks, as miners

Silver Holds Near $50.50 as Fed Outlook and Industrial Demand Shape Market

On Friday, November 21, 2025, silver hovered around $50.50 per troy ounce, as the market balanced fading hopes for imminent Federal Reserve rate cuts against strong industrial consumption. The precious metal,

, has retreated as investors adjust to evolving monetary policy cues. The CME FedWatch tool now shows a 43% chance of a 25-basis-point rate reduction at December’s FOMC meeting, . Fed Vice Chair Philip Jefferson’s emphasis on a “gradual” approach to further cuts has tempered optimism, while Governor Christopher Waller’s dovish remarks have led to policy uncertainty.

Nonetheless, industrial usage continues to underpin prices.

, the worldwide silver market, estimated at $22.5 billion in 2024, is expected to expand by 4.5% annually through 2034, fueled by growth in solar PV, antibacterial technologies, and electric vehicle electrification. China’s 2025 solar target of 160GW is set to drive up demand for silver paste, while Germany’s eco-friendly construction efforts are in public projects. UBS analysts point out that persistent structural deficits in silver—ongoing since 2021—leave the market exposed to liquidity shortages, and industrial needs surpass mining output.

Silver Trades Around $50.50 Amid Conflicting Fed Messages and Rising Industrial Demand image 0
The U.S. Department of the Interior’s recent classification of silver as a “critical mineral” has added new complications. , this move could disrupt supply networks and worsen current shortages. UBS, meanwhile, projects silver to reach $53 by the end of 2025, in early 2026, citing thin market liquidity and ongoing macroeconomic uncertainty.

Investors are also keeping an eye on geopolitical and economic developments.

—with silver up 66.6% year-to-date as of November 19—highlight the ongoing battle between safe-haven buying and inflation concerns. point to a broader move away from the U.S. dollar, while silver’s dual identity as both a monetary and industrial asset makes it particularly responsive to economic cycles. in silver would require resolving the tension between tighter Fed policy—which raises the cost of holding non-yielding assets—and the strong industrial demand driven by clean energy initiatives.

Corporate developments highlight silver’s strategic role.

new funding rounds totaling C$2.125 million and $250 million, respectively, to support exploration and take advantage of high prices. noted the profitability of processing lower-grade stockpiles in the current price environment, showing how producers are adapting to market shifts.

Looking forward, the December employment report and Fed minutes will be pivotal. Weak labor data could revive hopes for rate cuts, while stronger numbers may reinforce a hawkish stance. UBS strategists warn that silver’s high correlation with gold—another asset favored by central banks—means it could see “periods of notable outperformance,” but is unlikely to maintain leadership for long stretches.

, with technical analysis pointing to major support at $50 and resistance around $52.30.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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