Key Takeaways
- Gold prices continue their ascent, nearing $4,100 an ounce, fueled by persistent inflation risks signaled by the US Federal Reserve.
- Silver hits a multi-decade high of $51, driven by a powerful mix of industrial demand, safe-haven buying, and a severe supply crunch in London.
- Both metals are on track for significant quarterly gains, with gold up 14% and silver surging an impressive 70% year-to-date.
Gold prices climbed further this week, reacting to US Federal Reserve signals indicating that high inflation may persist. This has reinforced gold’s appeal as a hedge against economic uncertainty.
Pankaj Singh, Founder & Principal Researcher at SmartWealth.ai, stated that the September FOMC meeting minutes confirmed a “prolonged inflationary bias” and ongoing balance sheet reduction, providing strong support for gold.
Market Performance and Analyst Views
Internationally, Comex gold futures for December delivery closed at $4,000.4 per ounce, after peaking at $4,081 during the week. Spot gold also rose 1.06% to $4,018.30, reaching a record high of $4,059.34 per ounce.
According to Riya Singh, Research Analyst at Emkay Global Financial Services, “the week began with safe-haven demand as investors hedged against US fiscal risks and uncertainty over Fed policy. But sentiment shifted midweek as traders booked profits.”
Despite this, gold is set for its eighth consecutive weekly gain, up nearly 14% this quarter. Singh attributes this to “strong investor demand for tangible assets” amid concerns over the US national debt exceeding $36 trillion and persistent inflation.
Silver’s Spectacular Surge
Silver continued its historic rally, albeit with high volatility. On the MCX, it gained Rs 722 (0.49%) last week, hitting a record Rs 1,53,388 per kilogram.
Globally, Comex silver futures touched $49.96 per ounce, while spot silver briefly broke above $51—its highest level since 1980—before settling around $50.29.
Riya Singh highlighted silver as the “standout performer of 2025,” with a year-to-date surge of about 70%, powered by industrial demand, speculative buying, and safe-haven flows.
Supply Crunch Intensifies
A severe shortage in the London bullion market has amplified price movements. The one-month lease rate skyrocketed to 11%, the highest since 2022, indicating a critical lack of lendable silver.
Strong shipments of bullion to the US, driven by tariff concerns, have drained London inventories to multi-year lows. This has inverted the typical market structure, creating premiums of up to $2.50 per ounce over Comex futures.
Singh concluded, “The tight supply and ongoing global uncertainty could keep silver prices firm, though volatility will remain high as speculative long positions reach record levels.”
