Silver reached its highest level in decades due to a significant short squeeze in London, contributing to a strong year-to-date rally. Meanwhile, gold surged to a record high, driven by widespread investor enthusiasm for precious metals.
Spot silver increased by as much as 3 percent, approaching $52 an ounce, surpassing last week’s intraday record. Gold also broke through $4,068 an ounce, marking its eighth consecutive week of gains. Other precious metals, including platinum and palladium, experienced substantial increases as well.
The precious metals market has seen remarkable growth this year, with key metals rising between 50 percent and 80 percent, leading the rally in commodity markets. Gold’s rise has been supported by central-bank purchases, increasing assets in exchange-traded funds, and interest rate cuts from the Federal Reserve. Ongoing demand for safe-haven assets has been fueled by persistent U.S.-China trade tensions, concerns over the Fed’s independence, and the prospect of a U.S. government shutdown.
On Sunday, China urged the U.S. to retract tariff threats and engage in negotiations, cautioning that it would retaliate if the U.S. pursued new tariffs. President Donald Trump, who suggested an additional 100 percent tariff on Chinese goods last week, adopted a more conciliatory stance over the weekend.
“Just when geopolitical and trade risks were diminishing as tailwinds for gold, we have this flare-up in U.S.-China tensions,” remarked Kyle Rodda, an analyst at Capital.com. He noted that despite both nations’ willingness to communicate, “trade volatility may go silent but it never disappears. That’s a really good thing for gold.”
Concerns about liquidity in London have brought silver closer to its record of $52.50 an ounce from 1980, established under a now-defunct contract on the Chicago Board of Trade. Prices in London have surged to nearly unprecedented levels compared to New York, prompting some traders to reserve cargo slots on transatlantic flights for silver bars—a costly transport method usually reserved for gold—to capitalize on the substantial premiums in London.
Traders are also apprehensive ahead of the conclusion of the U.S. administration’s Section 232 investigation into critical minerals, which includes silver, platinum, and palladium. Fears that these metals might be subjected to new tariffs have intensified market tightness, setting the stage for the squeeze in silver after significant drawdowns of available supplies in London.
At 1:19 p.m. Singapore time, spot gold was up by 1.3 percent to $4,068.21 an ounce, trading close to $4,067. The Bloomberg Dollar Spot Index remained relatively stable after rising nearly 1 percent last week. Silver increased by 2.8 percent, exceeding $51 an ounce. Platinum hovered around $1,634 an ounce, while palladium saw gains of up to 3.6 percent.
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Published on October 13, 2025.
