September 3, 2025

Gold is shining brighter than ever! On Tuesday, it touched a stunning record high of $3,508.50 an ounce before settling around $3,490. Why this frenzy? Global worries about the economy, rising inflation, and ongoing geopolitical tensions refuse to cool down. Silver decided to steal some limelight too, breaking $40 an ounce – its best in 14 years. Sean Hoey, Managing Director of IBV International Vaults London, said, “The current surge in gold demand is a direct reflection of global economic uncertainty. With inflation concerns rising and geopolitical tensions showing no signs of easing, investors are increasingly turning to gold as a safe-haven asset.” This means people are buying gold to protect their money. The Dutch financial giant ING Think highlighted that with the US Federal Reserve likely to cut interest rates soon, both gold and silver rallies are gaining momentum. They added, “The US jobs report this Friday will be the focus for the market.” Everyone’s eyes are on this report to predict the Fed’s next move. Ross Norman, CEO of Metals Daily, pointed out that silver led the race by breaking critical resistance at $40, opening doors for gold to hit its new high. Meanwhile, Fitch Solutions’ BMI unit noted that gold stayed strong even when some global trade tensions eased and political conflicts cooled, showing gold’s stubborn strength. On Tuesday, while gold futures in the US topped $3,550 to reach $3,554.30, silver settled at $40.48 an ounce after touching $40.7. According to Hoey, IBV saw a big jump in clients buying physical gold and storing it in private vaults. This shows investors want safety that’s out of the reach of market swings. Norman called this gold bull run “the most extraordinary” since a smaller number of western investors jumped in, but the conviction is now stronger than ever. BMI raised its 2025 gold price forecast to $3,250 an ounce, up from $3,100, expecting prices between $3,200 and $3,600 for the rest of the year. ING Think said tariff tensions, doubts about the Fed’s independence, and a falling dollar gave precious metals more wind under their wings. Silver is outshining gold with a gold/silver ratio shrinking to 85 from 104.7 in April. Silver’s price jumped over 40% this year, and its ETF holdings grew for seven months straight – the longest streak since 2020. BMI said while lower bond yields and a weaker dollar didn’t spark bigger gold rallies recently, gold refuses to fall even as some global tensions ease. They expect gold prices to stay high in the near future, waiting for the US Fed’s rate cut expected in September, but warn that most of the good news might already be priced in. In the long run, gold is here to stay strong, trading well above the pre-Covid levels, making it a shining star in tough times.

Read More at Thehindubusinessline →

Tags: Gold price, Silver rally, Us federal reserve, Inflation, Global economy, Precious metals,