Silver hits 14-year high amid flight to safety
Silver prices surged past $45 an ounce for the first time in over a decade, fueled by mounting investor demand for safe-haven assets amid growing concerns about the US economy. Spot silver jumped as much as 2.6% on Thursday, extending its year-to-date gain to 55%. This outpaces even gold’s impressive 43% rally, highlighting silver’s renewed role as a preferred hedge in times of market uncertainty.
Gold also moved closer to a new all-time high, trading at $3,737.87 an ounce and just $53 below its previous peak. The gains in both metals come as equities face increasing pressure and investors seek shelter from macroeconomic instability, including concerns over tariffs, labor market weakness, and central bank policy.
Gold ETFs lead inflows as demand skyrockets
One of the most significant drivers of the gold rally has been the surge in exchange-traded fund (ETF) inflows. According to Citigroup, global gold ETFs saw record inflows of $10.5 billion in September alone, with total inflows surpassing $50 billion year-to-date. Analysts at the bank emphasized that ETFs have been the strongest component of gold demand this year, outshining all other sectors.
The recent wave of investment is largely coming from outside China and reflects deepening anxieties over the trajectory of the US economy. Factors cited include a weakening labor market, trade policy uncertainties, expectations for Federal Reserve rate cuts, and the pending shift in Fed leadership. These dynamics have pushed investors to diversify away from risk assets and into commodities like gold and silver.
Platinum surges on supply deficit fears
Platinum joined the rally, climbing more than 3% to breach the $1,500 mark for the first time since July 2014. Often used in industrial applications such as catalytic converters, platinum has gained over 65% this year amid chronic supply shortages and increased investment demand. This performance underscores the broad strength across precious metals in 2025.
Palladium also saw modest gains, continuing its upward trend alongside other metals. The Bloomberg Dollar Spot Index, which tracks the US dollar against major peers, advanced slightly, typically a headwind for dollar-denominated commodities but not enough to offset the strong bullish sentiment in the metals market.
Traders await key inflation data for Fed clues
Markets are now turning their attention to the upcoming US personal consumption expenditures (PCE) price index — the Fed’s preferred inflation gauge — which is scheduled for release Friday. Analysts expect a slower pace of inflation, which could bolster the case for interest rate cuts.
“Softer inflation could strengthen the case for Fed rate cuts, supporting bullion, with markets pricing two cuts this year,” noted Kotak Securities analyst Kaynat Chainwala. If inflation data confirms easing pressures, it may fuel further demand for gold and silver, reinforcing their bullish momentum heading into the final quarter of the year.
