Silver Drops Over 3% on Profit-Taking Despite Strong 2025 Gains

New York | EcoPulse24

Silver prices dropped by more than 3% during Monday trading, heading toward $77 per ounce, pressured by profit-taking after a strong year-end rally that lifted the white metal to a new record high of $81 per ounce.

This decline occurred as investors evaluated geopolitical developments following remarks by U.S. President Donald Trump, who indicated “significant progress” in peace talks with Ukraine, though he noted that a final agreement could take several more weeks. Trump also expressed willingness to address the Ukrainian parliament and participate in trilateral talks with Ukrainian President Volodymyr Zelensky and Russian President Vladimir Putin, alongside upcoming meetings with European leaders in January.

Despite the recent pullback, silver is still on track for annual gains approaching 166% in 2025, driven by strong speculative flows, ongoing supply disruptions following October’s short squeeze, central bank buying, and inflows into silver-backed ETFs.

U.S. interest rate cuts have also enhanced the appeal of precious metals, with markets pricing in expectations of further monetary easing in 2026. This underpins the medium-term outlook for silver prices, despite short-term volatility linked to profit-taking and market sensitivity to political and economic news.