Key Takeaways
Silver prices rallied 6% on May 11 after finding strong support at the $80 per ounce level, driven by a wave of speculative buying.
The move contrasts with gold, which faced pressure from a stronger U.S. dollar and rising oil prices amid renewed geopolitical uncertainty in the Middle East.
Silver Miner Revenue Snapshot (Q4 2025)
Silver prices jumped more than 6% on Monday after speculative traders bought the metal following a successful test of the psychologically important $80.00 per ounce level.
The rally was driven by a rush of buying activity after the $80 mark held as a firm technical floor, signaling strength to momentum-focused traders. The move pushed spot silver up toward $80.51 an ounce in trading, even as its sister metal, gold, moved in the opposite direction.
Spot gold declined 1% to trade near $4,669.82 an ounce as rising oil prices and a stronger U.S. dollar weakened demand for the yellow metal. The U.S. Dollar Index rose 0.2% after President Donald Trump’s rejection of an Iranian peace proposal stoked inflation fears and reinforced expectations that the Federal Reserve may delay interest rate cuts.
The $80.00 level now stands as a critical support benchmark for silver, with traders watching to see if the momentum can be sustained. Investor attention is turning toward upcoming U.S. inflation figures and a scheduled meeting between President Trump and Chinese President Xi Jinping, which is expected to cover global energy security and trade relations.
The primary driver weighing on gold—and highlighting silver’s relative strength—was the breakdown in U.S.-Iran negotiations. President Trump’s description of Tehran’s counterproposal as “totally unacceptable” sent oil prices surging nearly 5% as the Strait of Hormuz remained closed to shipping. The spike in crude intensified concerns about sustained global inflation, reducing the appeal of non-yielding gold.
While financial market dynamics and technical trading drove Monday's surge, silver continues to be supported by strong physical demand. According to customs data, China’s silver imports have been robust, driven by both retail investors and industrial demand from photovoltaic manufacturers. As of the end of April 2026, silver holdings in London vaults stood at 27,454 tonnes.
The price rally directly impacts the revenue of silver mining companies. A sustained move higher would disproportionately benefit a producer like First Majestic Silver (NYSE:AG), which is a more direct bet on silver prices. In contrast, a more diversified producer like Hecla Mining (NYSE:HL), which generated 60% of its revenue from silver in its last quarter, has a larger overall revenue base that provides more resilience when silver prices are volatile.
This article is for informational purposes only and does not constitute investment advice.
