Peter McGuire, CEO of trading.com, has issued a strong warning against shorting silver despite the precious metal's recent retreat from record highs, comparing the white metal's momentum to "a V12 Lamborghini on an autobahn." Speaking to CNBC-TV18 on Monday, McGuire emphasized that current market conditions suggest more upside potential ahead.

Record-Breaking Performance Amid Volatility

Silver reached unprecedented heights on Monday, with spot prices crossing $82 per ounce in early trading. At its peak, the precious metal briefly commanded higher per-unit value than shares of Nvidia, the world's most valuable listed company, making it the second-most valued asset after gold.

However, the rally has shown signs of volatility, with prices declining nearly 10% from the record levels and settling back below the $80.00 per ounce mark by the end of Monday's session.

Exceptional Year-to-Date Performance

Silver's performance has been nothing short of remarkable. Having begun the year at sub-$30 levels, the white metal has surged over 170% with three trading sessions remaining in the year. This trajectory positions silver for its best calendar year performance since 1979, when it gained over 200%.

"If you would have told me that this time last year, I would have laughed, and I would have said I don't think it can get there, but now it has," McGuire acknowledged. "We have got a couple of days left of trade, so we might even punch out 180%."

Multiple Drivers Supporting Rally

McGuire identified several key factors driving silver prices higher, creating a confluence of supportive conditions for the precious metal:

• Supply shortfall pressures
• Strong industrial demand
• Need to cover paper short positions
• Significant speculative inflows

These combined forces have created what McGuire describes as "very dynamic trading" conditions, with momentum remaining strongly tilted toward the upside.

Bullish Long-Term Outlook

Despite acknowledging the current "overdrive" conditions, McGuire maintains an optimistic long-term perspective for precious metals. His projections extend well into 2026, with specific price targets for both silver and gold.

"It's too early to talk about being short at the momentum and the upside is very strong, and let's just see where it rolls," McGuire concluded, reinforcing his stance against premature short positions in the current market environment.

Gold and other precious metals posted gains on Thursday after U.S. job market data showed continued softening, reinforcing expectations for Federal Reserve rate cuts despite a firmer dollar and higher Treasury yields capping advances.

Current Gold Price Performance

Spot gold added 0.1% to $4,456.98 per ounce, recovering from Wednesday's profit-taking decline. U.S. gold futures for February delivery also firmed 0.1% to $4,465.70. The precious metal remains near record territory after hitting an all-time high of $4,549.71 on December 26.

Gold ended 2025 with a remarkable 64.4% gain, marking the biggest yearly increase since 1979.

Labor Market Data Supports Fed Easing Case

U.S. job openings dropped to a 14-month low in November according to JOLTS data, while hiring resumed its sluggish pace, pointing to ebbing demand for labor amid policy uncertainty related to import tariffs. The softer employment data reinforced market expectations for monetary policy easing.

"The data from the labor market continues to support the case for Fed rate cuts, which has been underpinning gold prices," market analysts noted. However, gains were tempered by the dollar holding steady near a more than two-week high and the benchmark 10-year U.S. Treasury yield rising from Wednesday's one-week low.

Federal Reserve Rate Cut Expectations

Investors currently expect at least two Fed rate cuts this year, with market focus turning to Friday's non-farm payrolls data for additional labor market insights. Non-yielding assets like gold tend to perform well in low-interest-rate environments and during periods of geopolitical or economic uncertainty.

Geopolitical Developments

Geopolitical tensions continued to provide support for safe-haven assets. The U.S. seized two Venezuela-linked oil tankers in the Atlantic Ocean on Wednesday, one sailing under Russia's flag, as part of President Donald Trump's aggressive push to control oil flows in the Americas.

Other Precious Metals Performance

Other precious metals also posted gains during the trading session, reversing Wednesday's sharp declines.

Spot silver lost 0.7% to $78.70 per ounce after hitting an all-time high of $83.62 on December 29. HSBC forecasts silver will trade between $58 and $88 an ounce in 2026, driven by tight physical supply and robust investment demand, but warned of a potential market correction as supply constraints ease. Spot platinum rose 0.2% after scaling a record peak of $2,478.50 last Monday.