Silver and Gold Silver Surge as Dollar Weakness Fuels Precious Metals Rally

Silver price today sits at $69.19 an ounce, up 0.4% on the day, and it is climbing right alongside gold in a precious metals rally that has been building since the start of August. Gold and silver prices are both getting a lift from a weaker US dollar and from Treasury yields that have eased off their highs, and the silver price forecast from several trading desks leans higher still going into Friday’s Jackson Hole speech from Fed Chair Kevin Warsh.

Silver Price Today Rises as Gold Leads a Precious Metals Rally

Spot gold rose as much as 1.6% on Monday to $4,677.14 an ounce, its best level since May 14, according to Reuters, and US gold futures for December delivery climbed 1.2% to $4,734.70. Jim Wyckoff, a market analyst at American Gold Exchange, wrote about the move in a research note published the same day:

The fundamentals and technicals are kind of lining up bullish for the gold market.

Silver price today held near $69 an ounce and tracked gold higher right along with it, and the wider rally carried on into a new week. The silver price has mostly moved in step with gold this month, and the dollar index was sitting near 98.8, close to a three month low. Quite a few desks on Wall Street have pointed to that dollar weakness as the main tailwind behind this month’s gains in gold and silver prices. Morgan Stanley has also said gold could top $5,000 an ounce in 2027, and Goldman Sachs has called it a top pick among commodities for the months ahead.

What Is Driving The Rally Right Now

Right now, an even softer dollar is making silver price today cheaper for buyers holding other currencies, and that alone has pulled fresh demand into the metal. The silver price, much like gold, tends to react fast to moves in the dollar index, and this month has been no exception. Treasury yields have eased too, helped along by the US Treasury’s bond buyback plan, which the Treasury doubled earlier this month, from $2 billion to at least $4 billion per operation for 10 to 30 year securities.

The 30-year yield had touched 5.34% earlier in August, its highest since 2007, before it eased back once the buyback plan took hold. Lower yields cut the cost of holding metals that pay no interest, and that has drawn even more buyers toward gold and silver. Central banks have added to the move as well, with holdings climbing at their fastest pace in years as reserve managers look to diversify away from the dollar.

Silver Price Forecast Ahead Of Warsh’s Jackson Hole Speech

Fed Chair Kevin Warsh will give his first Jackson Hole keynote on Friday, and traders are watching closely for his tone on rates, on debt, and on the dollar. A hawkish surprise would likely pause the rally, while traders would likely treat a dovish one as strongly bullish for gold.

Analysts at Citi said this:

The market will not only continue to price out Fed rate hikes.

The silver price forecast from most desks still depends on how traders read that speech, and a dovish surprise would probably stretch the precious metals rally further into September.

Where Silver Price Today Could Head Next

If the dollar keeps falling and yields stay capped, the precious metals rally could carry on for weeks yet, and silver price today should stay firm near its recent highs. The silver price could even test $70 if the rally keeps its current pace. A hawkish surprise from Warsh would probably send gold and silver prices lower fairly quickly, and that would also cut the silver price forecast for the weeks that follow. For now, silver price today should move in step with whatever direction gold takes coming out of Jackson Hole, and, at $69 an ounce, silver price today looks like the level to watch going into the weekend.