Silver briefly surpassed $51 per ounce during Thursday trading, marking the first time the precious metal has exceeded $50 since January 1980. The surge followed earlier intraday highs above $50, though prices later retreated to around $49. The rally was fueled by a combination of supply shortages and strong investor demand amid global economic uncertainty.
Spot gold declined by 2% on Thursday after briefly surpassing $4,000 per ounce the previous day. The drop in both gold and silver prices came after a ceasefire was announced in the conflict between Israel and Hamas in Gaza, prompting investors to lock in profits from recent gains in safe-haven assets.
“Speculators are taking some profits off the table as the Gaza ceasefire takes effect, reducing immediate geopolitical risk,” said Tai Wong, an independent metals trader, in a Reuters report. “However, the fundamental drivers of the rally—central bank reserve diversification and growing global sovereign debt—remain intact, supporting a bullish outlook for precious metals.”
This year, gold’s price increase has been driven by multiple factors, including geopolitical instability, strong central bank purchases, rising ETF inflows, expectations of Federal Reserve rate cuts, and economic uncertainty linked to shifting trade policies.
The SPDR Gold Shares Trust (GLD), the largest physically backed gold ETF, has gained nearly 50% in value this year. Smaller, leveraged mining ETFs have seen even steeper increases, with the MicroSectors Gold Miners 3X Leveraged ETNs rising over 740%, making it the top-performing ETF tracked by VettaFi.
Silver has climbed 69% in 2025, driven by similar macroeconomic forces and exacerbated by tight supply conditions in the spot market. ETFs tied to silver mining have also delivered substantial returns: the iShares MSCI Global Silver Miners ETF and ProShares Ultra Silver have each gained more than 148% year-to-date.
A metals trader noted to Reuters that liquidity in the London silver market has tightened due to strong ETF buying and physical metal being redirected to the U.S.
Market expectations point to further rate cuts by the Federal Reserve, with traders pricing in 25-basis-point reductions at upcoming meetings in late October and mid-December. This outlook persists despite recent inflation data showing upward pressure, as concerns about labor market weakness appear to outweigh inflation worries among policymakers.
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Silver surpasses $50 an ounce for first time amid geopolitical, economic uncertainty
Silver surpassed $50 an ounce for the first time on Thursday amid a supply shortage and an economic environment that bolsters precious metals. n nSpot silver briefly rose above $51 an ounce during Thursday ‘s trading session after breaking the $50 an ounce threshold earlier in the day. It has since dipped back below $49 a share where it opened on Thursday. The last time silver traded around these levels was January 1980. n nSpot gold prices fell 2% on Thursday after they crossed the $4,000 on Wednesday for the first time. n nPrecious metals investors booked profits in both silver and gold after prices for the safe haven assets declined in the wake of a ceasefire deal announced in the Israel-Hamas war in Gaza. n nIF YOU BOUGHT A GOLD BAR AT COSTCO LAST YEAR, HERE IS WHAT IT ‘S WORTH NOW n n”Speculators are taking some gold chips off the table as the Gaza ceasefire takes effect since it reduces the temperature in a historically volatile region,” said Tai Wong, an independent metals trader, in a Reuters report. n n”Gold and silver may need to consolidate further, but the primary drivers of the rally, reserve diversification and large, growing global sovereign debt, remain entirely valid and keep the bullish outlook intact,” Wong added. n nGOLD FOMO COULD PUSH METAL TO $4,000 n nGold ‘s rally this year has been driven by geopolitical tensions, as well as robust demand from central banks, rising inflows to exchange-traded funds (ETFs), expectations of interest rate cuts, and economic uncertainty stemming from tariffs and trade policy shifts. n nThe SPDR Gold ETF Trust, the largest backed by physical gold, has advanced nearly 50% this year. While smaller mining ETFs, including MicroSectors Gold Miners 3X Leveraged ETNs, have advanced more than 740% as the top performing ETF this year, as tracked by VettaFi. n nTicker Security Last Change Change % GLD SPDR GOLD SHARES TRUST – USD ACC 365.44 -6.90 -1.85% GDXU BANK OF MONTREAL MICROSECTORS GOLD MINERS 3X 198.96 -29.58 -12.94% n nSilver ‘s 69% rise this year has been driven by similar factors, as well as a supply shortage on the spot silver market. n nETFs tied to gold ‘s cousin are also big gainers this year, with the iShares MSCI Global Silver Miners ETF up over 148% and ProShares Ultra Silver up more than 148%. n nTicker Security Last Change Change % AGQ PROSHARES ULTRA SILVER – USD DIS 78.81 -3.29 -4.01% SLVP ISHARES INC MSCI GLOBAL SILVER MINR ETF 27.69 -0.90 -3.15% n nA precious metals trader noted to Reuters that liquidity in the London silver market is limited due to ETF buying and metal being moved to the U.S. n nFED MINUTES SHOW POLICYMAKERS REMAIN CONCERNED ABOUT INFLATION AS THEY WEIGH RATE CUTS n nMarkets expect the Federal Reserve to continue cutting interest rates after the central bank moved forward with a 25-basis-point cut last month, the first rate cut this year. n nTraders are pricing in 25-basis-point cuts at the Fed ‘s upcoming policy meetings in late October and mid-December. n nGET FOX BUSINESS ON THE GO BY CLICKING HERE n nThe anticipation of additional rate cuts by the Fed this year comes despite signs inflation is trending higher and moving further away from the central bank ‘s 2% target, as concerns about a weakening labor market outweigh policymakers ‘ inflation worries.