Gold and silver prices continue to rise this week, with gold setting a further all-time high spot price in USD today. Safe haven demand is outweighing traditionally bearish indicators for metals and prices are steadily climbing higher with each week.
Gold climbed to a new USD record of $2,955.68 per ounce so far today, and continues to push closer to $3,000. This level will likely prove a key resistance point and psychological barrier for investors, but once broken it could result in further buying momentum.
The US dollar index is down 1% since the start of February, and this weakness in the dollar has kept other currencies from records for now. In GBP gold is trading at £2,340 per ounce today, an historically high level, but just short of the current record of £2,382.24. In Euros gold is performing similarly, trading at €2,830 but shy for now of the EU record of €2,857.81.
Silver has also seen solid gains in the past month, rising nearly 9% and passing $33 per ounce for the first time since October. With the gold-silver ratio sitting near 90 however, compared to 73 in May 2024, there is still plenty of potential behind silver. A ratio of 73 with gold now at $2,955 would represent silver at $40 an ounce, still someway off its 2011 peak of $48.70, but a considerable rise nonetheless if the gap closes.
Reports from China suggest demand for gold in particular remains high. China’s central bank reported a third month of reserve purchases, and consumer demand is also holding up. It was this time last year that Chinese demand kicked off gold’s record-breaking rally in 2024, and 2025 looks to be following suit.
A dip in the gold price over the weekend once again provided only a short-lived opportunity for buying below $2,900 per ounce, and was quickly reversed as trading began. Despite inflation remaining high and rate cuts hopes fading, and despite initial moves towards peace in both the Middle East and Ukraine, investors continue to look towards gold’s safe haven appeal as a way to protect their wealth against further shocks to come.
