Key Takeaways
- Silver has surged past $60 per ounce, driven by a significant supply deficit, booming industrial demand from solar and EV sectors, and substantial ETF inflows, with futures hitting $60.41 on Wednesday.
- Copper prices resumed gains, with COMEX contracts climbing 0.85% to $5.365/lb, as traders anticipate a potential 25 basis points rate cut from the U.S. Federal Reserve's ongoing meeting.
- Aramco (2222.SA) is on track to commence initial gas output from its massive Jafurah unconventional gas field by the end of December 2025, targeting 200 million cfd in its first phase.
- Russian Foreign Minister Sergei Lavrov has accused Europe of seeking to "rip off Russia and take our gold reserves" to finance ongoing conflicts, citing Europe's financial constraints.
Silver's Historic Rally: Industrial Demand and Supply Shortages Fuel Surge Past $60
Silver (XAG) prices have broken through the $60 per ounce mark, with futures reaching $60.41 on Wednesday, December 10, 2025, representing a 3.1% jump in spot prices. This historic surge is largely attributed to a persistent supply deficit and robust industrial demand, particularly from the rapidly expanding solar panel and electric vehicle (EV) sectors. The iShares Silver Trust (SLV) has seen its value soar by 105% this year, reflecting significant investor interest and physical bullion absorption.
The global silver market faces a critical imbalance, with mine production around 820 million ounces annually failing to meet an estimated total demand exceeding 1.24 billion ounces in 2025. This deficit marks the largest sustained shortfall in over a decade, with supply consistently lagging demand for five consecutive years. Strong inflows into silver-backed ETFs, totaling over $1 billion in recent months, have further tightened available supply. Analysts are forecasting silver to potentially reach $60-$75 per ounce by the end of 2025, underscoring the metal's dual role as both a precious metal and a critical industrial commodity. Silver's recent inclusion on the U.S. critical mineral list further highlights its strategic importance.
Copper Resumes Gains as Federal Reserve Meeting Looms
Copper (XCU) prices have resumed their upward trajectory, with domestic markets in India seeing nearly a 1% rise to Rs 1,089.20 per kg. On the COMEX, copper contracts climbed 0.85% to $5.365 per pound, while the benchmark three-month copper on the London Metal Exchange (LME) gained 0.67% to $11,564 a ton. This renewed optimism comes as traders closely monitor the U.S. Federal Reserve's two-day policy meeting, which began today, for cues on future monetary policy.
Markets are largely anticipating a 25 basis points rate cut from the Federal Open Market Committee (FOMC), though some analysts suggest a "hawkish cut" might be on the cards, indicating lingering inflation concerns despite the rate adjustment. Copper is increasingly recognized as a strategically important metal, with a widening demand-supply gap contributing to its bullish outlook. Factors such as planned Chinese smelter cuts, higher contract premiums from Chilean mining giant Codelco, and ongoing mine disruptions are contributing to a supply squeeze outside the U.S. market, keeping prices elevated and volatile. In November, copper prices had already achieved a 1.9% month-over-month gain, closing at $5.1855 per pound.
Aramco's Jafurah Gas Project Set for Initial Output by Year-End
Aramco (2222.SA), the Saudi Arabian oil giant, is on schedule to begin initial gas production from its massive Jafurah unconventional gas field by the end of December 2025. This significant project, Saudi Arabia's largest non-associated gas field, is targeting initial volumes of 200 million cubic feet per day (cfd) in its first phase. The Jafurah development is a cornerstone of Saudi Arabia's broader energy strategy, aiming to produce half of its electricity from gas and renewables by 2030 and reduce its reliance on burning crude oil for power generation.
The field is projected to have a raw gas processing plant with a capacity of 3.1 billion cfd by 2027, eventually reaching 2 billion cfd of sales gas, 418 million cfd of ethane, and 630,000 barrels per day (b/d) of natural gas liquids (NGLs) and condensate once fully operational by 2030. The non-associated nature of the gas means its production is independent of OPEC+ oil output quotas, providing Saudi Arabia with greater flexibility in its energy exports.
Lavrov Accuses Europe of Eyeing Russian Gold Reserves for War Financing
In a significant geopolitical statement, Russian Foreign Minister Sergei Lavrov has asserted that European nations are considering seizing Russian gold reserves to fund ongoing conflicts. Lavrov stated that Europe "has no other sources for financing this war than to rip off Russia and take our gold reserves," attributing this to Europe's reported financial shortages. This comment highlights the escalating economic tensions and the potential for further financial measures amidst the ongoing geopolitical landscape.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.