Platinum, Silver Price Forecast: XAG and XPT Lead Metals Market Rally as Dollar Wanes, Gold Pauses
As the U.S. dollar weakens and gold shows signs of being overbought, investor appetite has pivoted toward silver and platinum, sending...
Quick overview
- The U.S. dollar's decline and gold's overbought status have shifted investor interest towards silver and platinum, driving their prices to multi-year highs.
- Platinum reached $1,305 an ounce, its highest since 2020, while silver surpassed $37 for the first time in 13 years, reflecting a trend away from gold.
- Chinese demand for jewelry and persistent supply shortages are fueling platinum's momentum, with analysts predicting ongoing deficits through 2025.
- Silver has surged 32% since April, outperforming gold, as the gold/silver ratio drops significantly, indicating a shift in market sentiment.
As the U.S. dollar weakens and gold shows signs of being overbought, investor appetite has pivoted toward silver and platinum, sending both metals soaring to multi-year highs.
Precious Metals Surge Amid Weakening Dollar
In recent months, silver and platinum have been on a strong bullish trajectory. Platinum surged to $1,305 an ounce—its highest level since 2020—while silver broke above the $37 level for the first time in 13 years. The rise reflects a broader shift away from gold, with investors increasingly favoring metals with stronger industrial applications.
Friday marked platinum’s ninth consecutive session of gains, peaking at $1,205.85 per ounce—up 22% since early April when it was trading below $900. Though a temporary pullback followed due to gold’s spike amid Middle East tensions, the new trading week has seen platinum jump again, gaining nearly 4% in just two days.
China’s Demand and Supply Risks Fuel Platinum’s Momentum
Chinese demand has been a key catalyst, with a robust rebound in jewelry, coin, and bar purchases helping support prices. On the supply side, analysts warn of persistent shortages, with 2025 potentially marking the third consecutive year of deficits. These fears of tightening global supply are adding to the bullish sentiment around platinum.
Silver Breaks Out with 32% Surge
Silver, too, has made impressive gains, climbing 32% since April when it briefly dipped to $28.06. Support from the 20-month SMA near that low gave way to an aggressive rally, pushing silver above $37 this week. The breakout marks its highest level in over a decade and extends silver’s run of outperforming gold.
On Tuesday, silver jumped another 2% even as gold declined, highlighting the ongoing divergence. The gold/silver ratio—often used as a sentiment gauge—has slid toward 90, far below the extreme highs of over 100 during past market shocks.
Outlook: Gold Cools as Silver and Platinum Continue to Shine
While gold retreats after its recent rally, silver and platinum remain in strong uptrends. The weakening U.S. dollar, revived industrial demand, and looming supply gaps are likely to continue supporting further gains. With speculators rotating away from traditional safe havens, silver and platinum may remain the standout performers in the precious metals space in the weeks ahead.
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