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Silver Hits $45 for First Time Since 2011 as Gold Nears Record.
commodities :: 2025-09-25 :: source - bloomberg
By Sybilla Gross and Mark Burton
(Bloomberg) -- Silver rose above $45 an ounce for the first time in 14 years while gold neared another record high, bolstered by a risk-off mood in equity markets and ongoing worries about the trajectory of the US economy.
Spot silver rallied as much as 2.6%, extending a blistering rally that’s lifted prices more than 55% this year. That outstrips a 43% gain in gold, which has set more than three dozen records this year, amid a slew of bullish drivers including a weaker dollar, central-bank buying and rising geopolitical risks.
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The precious metals are on a tear as US stock markets have come under pressure, and surging demand for gold exchange-traded funds this month signals a growing clamor for safe-haven assets. Inflows into global gold ETFs surged to a record $10.5 billion so far in September, with year-to-date inflows exceeding $50 billion, according to Citigroup Inc.
“ETF has outshined all other gold demand sectors this year and is the single most important contributor to the gold price rally in our view,” the bank’s analysts said in an emailed note. “September gold ETF inflows are mainly driven by ex-China, reflecting the weakening US labor market, tariff-driven growth concerns, Fed rate cutting cycle, as well as the upcoming Fed leadership shift.”
Fund inflows hit a three-year high on Friday, according to data compiled by Bloomberg. So far this year, bullion-backed holdings have risen every month apart from May, expanding by 400 tons.
Gold prices climbed 0.4% to $3,751.23 an ounce, trading about $40 shy of the last record set on Tuesday and paring Wednesday’s decline.
Meanwhile, Platinum jumped more than 3% to breach $1,500 dollars an ounce for the first time since July 2014. The white metal, valued both as an investment asset and as an input into industrial applications such as catalytic converters, has surged more than 50% this year as a consecutive years of supply deficits come to a head.
Investors were also digesting comments from US officials. Treasury Secretary Scott Bessent on Wednesday expressed disappointment that Fed Chair Jerome Powell hasn’t clearly established an agenda for cutting rates. Earlier this week, the head of the US central bank reiterated the need to take a cautious approach amid signs of a weakening labor market and the risk of higher inflation. Lower rates tend to benefit precious metals, which don’t pay interest.
Looking ahead, traders will focus on the US personal consumption expenditures price index that’s due on Friday. The Fed’s preferred measure of underlying inflation likely grew at a slower pace last month, which would boost the argument for rate cuts.
“Softer inflation could strengthen the case for Fed rate cuts, supporting bullion, with markets pricing two cuts this year,” Kaynat Chainwala, analyst at Kotak Securities Ltd., said in a note on Thursday.
Silver was 2.1% higher at $44.84 an ounce at 12:42 p.m. in London, while palladium also rose. The Bloomberg Dollar Spot Index edged lower.
--With assistance from Preeti Soni and Jack Ryan.
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