Silver breaks through $66 to hit a new all-time high, supply crisis drives precious metals collectively higher

Silver Supply Shortage Drives Record Prices

On December 17, silver prices experienced a key breakthrough, with the per-ounce price surpassing $66 for the first time, hitting a historic high. This surge was mainly driven by market concerns over supply shortages. According to the latest forecast from the Silver Institute, the silver deficit is expected to persist through 2026, leading many market analysts to remain optimistic about the future, with a general prediction that silver prices could challenge the psychological $100 mark next year.

Meanwhile, gold also moved higher, temporarily trading at $4320 per ounce. The simultaneous rise of these two safe-haven assets reflects ongoing market concerns over geopolitical risks.

Crude Oil Rebounds Sharply as Geopolitical Tensions Rise

The Trump administration intensified sanctions on Venezuela, announcing a comprehensive blockade on sanctioned oil tankers operating to and from the country. According to traders’ estimates, this move could impact an average of 400,000 to 500,000 barrels of oil transportation daily. Additionally, the U.S. is reportedly preparing a new round of sanctions against Russia.

Driven by escalating geopolitical risks, crude oil prices surged significantly. At press time, WTI crude oil rose by 2.43%, with the price per barrel surpassing $56.50.

US Stock Futures Rise, Tech Stocks Diverge

As the US stock market opens on December 17, futures for the three major indices all increased. At 4:49 AM Eastern Time, Dow futures were up 0.15%, S&P 500 futures rose 0.22%, and Nasdaq 100 futures gained 0.25%.

Individual stocks showed divergence: Nvidia (NVDA) slightly declined by 0.06%, while Tesla (TSLA) continued its strong momentum, rising 0.49% to $492.20, hitting a new all-time high.

UK Inflation Drop Exceeds Expectations, GBP Under Pressure

UK November Consumer Price Index (CPI) showed a much larger month-over-month decline than market expectations. Data indicated that the year-over-year CPI growth was only 3.2%, below economists’ previous estimate of 3.5%. This “unexpected cooling” reinforced market expectations of an imminent UK interest rate cut, boosting trading activity around rate reductions.

As a result, the GBP/USD exchange rate came under pressure, falling 0.72% to 1.3324.

Fed’s Waller to Speak Soon, Market Volatility Expected

Federal Reserve Board member Waller is scheduled to deliver a speech at 8:15 AM Eastern Time (9:15 PM Beijing Time) on the macroeconomic outlook. Wall Street generally holds a high regard for Waller, and his comments are closely watched in the context of Fed chairmanship considerations.

Investors should pay close attention to the tone of his speech—whether hawkish or dovish—as it could cause significant market fluctuations, especially affecting the dollar, bonds, and risk assets.