Just as the gold price oscillates near record highs, another precious metal – silver – hit its 14-year high mark this week, amid persistent geopolitical and economic uncertainties, and mixed signals from the U.S. Federal Reserve.
In a volatile week for the precious metals market, both saw fresh intraday upsides followed by corrections, clawbacks and yet further spikes.
At 04:23am EDT on Thursday, the COMEX gold December delivery contract traded at $3,790.50 per troy ounce, up 0.6% or $22 on the day, having risen for much of the week and capped $3,800 at one point.
Its latest surge began on Monday with an intraday spike of 1% to $3,728. Spot gold prices in Dubai also remained north of $3,750 on Thursday.
The rally was only momentarily slowed after Fed chairman Jerome Powell signalled a more cautious approach to cutting U.S. interest rates, having a bearing on the strength of the dollar, and the precious metals market as a consequence.
Speaking in Providence, Rhode Island, U.S., on Tuesday, Powell said that if the Fed were to cut rates “too aggressively” it would “leave the inflation job unfinished and need to reverse course later” and raise rates, according to an AP report.
“But if the Fed keeps its rate too high for too long the labor market could soften unnecessarily,” he added.
More Of The Same
Powell’s comments curbed some of the market’s enthusiasm in the wake of the central bank’s latest cut on September 17; its first for this year. Nonetheless, gold continues to glitter having risen by over 40% in the year-till-date in 2025. That’s after yellow metal rose by 26% in 2024.
Many expect this trend to continue and for the upside to persist because the appetite for gold from global central banks remains elevated. This is keeping both the attraction of yellow metal and its price higher.
Several central banks believe gold is neither exposed to counterparty risk nor to international sanctions some often fret over (e.g. Russia). Unsurprisingly, the market is witnessing buying levels of more than 1,000 tonnes per year now for three successive years, according to the World Gold Council, an industry trade association.
This is reminiscent of central banks’ moves during the global financial crisis of 2008-09, and the subsequent transition to a low interest rate climate.
Retail investors are playing their part in the rally as well, by flocking both to physical gold as well as gold exchange traded funds, in their quest for a safe haven in a volatile world that’s having to contend with anxieties ranging from geopolitical tensions to trade wars.
That is despite gold being a non-yielding asset, but admittedly a highly liquid one at present. And it’s not just gold, as silver shot up too this week.
Silver Shoots Too
Considered to be a cheaper safe-haven investment option, the price of silver capped a 14-year high of $43.81 per troy ounce on Monday. That marked a near 50% appreciation for the year-till-date, exceeding even gold’s spectacular rise, driven yet higher still by the same drivers and market dynamic.
Its upswing has also continued for much of the week. At 05:23am EDT on Thursday, the COMEX silver contract for December delivery was up 1.99% or $0.88 to $45.07, hitting year another high.
The market may get more of the same for both silver and gold for the remainder of the year, albeit with doses of heavy volatility, contingent upon what the Fed does or doesn’t.