Silver prices surpassed the $45 psychological level on COMEX, while gold prices remained close to all-time highs as of September 29, 2025. This movement was fueled by a weaker U.S. dollar and increasing expectations of further interest rate cuts by the Federal Reserve.
According to Manav Modi, an analyst in Precious Metal Research at Motilal Oswal Financial Services Ltd., traders are currently pricing in a 90% probability of a Fed rate cut in October, with a 65% chance of an additional reduction in December.
The U.S. Commerce Department reported that the Personal Consumption Expenditures Price Index increased by 0.3% in August, which aligned with market expectations.
Sourav Choudhary, Managing Director at Raghunath Capital, stated, “Silver is where the real upside lies. With the gold-to-silver ratio currently at 87:1—versus its average of 63:1—silver is primed for an explosive breakout. It could easily multiply fourfold from here.”
Gold has appreciated by 60% since January 2024, but silver’s relative undervaluation suggests the potential for even greater gains. On Friday, SPDR gold holdings rose by 0.89%, reaching 1,005.72 tonnes. However, physical gold demand in China has waned, with discounts falling to multi-year lows, while demand in other parts of Asia remains steady.
Amid uncertainty surrounding a potential U.S. government shutdown, dependent on the passage of a debt bill before October 1st, safe-haven demand for precious metals could further increase. Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd., indicated that silver has support levels at $45.50-$45.70 and resistance at $46.45-$46.80.
Published on September 29, 2025.
