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Gold and silver prices have jumped higher again this week, rebounding from recent dips to test all-time high levels set in October.
The price of gold has climbed more than 5% so far this week and puts the metal back above $4,200 per ounce, shy of the USD spot price record of $4,381.98. In GBP, gold is trading at £3,224, and thanks to some weakness in sterling, is not far from the UK record of £3,269.31. In euros, gold is back above €3,600, below the euro-high of €3,764.60.
Silver has also jumped over 11% so far this week in USD, and at $54.40 is essentially level with last month’s highs, barring a short-term spike above $55. In GBP, silver has set a new all-time high of £41.41 per ounce, while in euros silver is just short of a new record at €46.77.
News of a resolution to the US government shutdown could have been considered bearish for the metals, but markets seem more focused on the potential for further US debt. The end of the shutdown also means economic data releases will resume, and could lead the way to the Federal Reserve’s next rate cut.
The meeting on December 10th is currently looking a close-call, with the CME FedWatch tool showing a 55.9% chance for a cut, versus 44.1% chance for no change. If economic data shows any signs of the job market weakening however, then markets will expect rates to ease further.
After last month’s blistering rally and subsequent correction, three weeks on consolidation helped lay a stronger foundation for gold and silver. If momentum builds too quickly again there could be some further risk of a downturn, but the fundamentals remain strong. Central bank buying remains highly supportive for gold in particular, while silver has been added to the US’s ‘critical minerals’ list, reflecting its strategic importance.
The dip of the last few weeks offered a solid opportunity for investors to buy-in, but further gains will now likely depend on the outlook for December’s rate meeting. If a cut becomes more likely, further dollar weakness and gains for gold and silver would be expected. If rates are left unchanged in December however then further consolidation would be expected in the final weeks of 2025.
