The impressive rally in gold and silver has continued in trading this week, with both metals scoring new records in many currencies.

Having passed $3,000 per ounce for the first time this year, gold has pushed to a new all-time high of $3,792.12 this week, and $3,800 could be passed at any time considering the current pace of gains. Gold is now up 44.5% in USD so far this year, and after a period of consolidation over the summer, the rally has been accelerating this month.

240925 USD Chart

In GBP, gold hit £2,800 per ounce (£90 per gram) for the first time, up 34% year-to-date. In euros, gold is trading at €3,200 (€102.99 per gram), a gain of 27.8% YTD. The pace of gains could cause some selling pressure, but so far gold’s rally seems well supported with any dips proving to be short-lived.

Silver hit a fresh 14-year high of $44.55 per ounce this week, and could soon challenge the 2011 high of $48.70 or even the 1980 all-time high of $49.45 per ounce. $50 would represent a major new milestone for the metal and like gold, silver’s rally seems well supported so far. In GBP, silver is nearing £33 per ounce after hitting a new UK record of £32.90, while in euros it reached a new all-time high of €37.71.

Markets still see a 94.1% chance of another rate cut from the Fed on 29th October according to the CME FedWatch tool. Inflation and employment figures will remain key to these expectations for the next few weeks, and anything that further solidifies the chance of a rate cut could prompt additional dollar weakness and gains for gold and silver.

President Trump signalled a major change to the conflict in Ukraine after suggesting they could win back all territory taken by Russia in the past few years. After peace efforts have led nowhere, and Russia seemingly provoking NATO with repeated violation of their airspace, the conflict remains a potential driver for safe haven assets.

Another major driver this week came from news that China is reportedly looking to improve its position in the wider bullion market by storing the gold reserves of other nations, similar to the Bank of England in London or Federal Reserve in New York. The country has spoken to friendly nations about becoming the custodian for their gold reserves, and this would be another major step in moving away from the reliance on the US dollar and western nations.

Analysts continue to forecast further gains for gold and silver despite the exceptional pace of gains this month, and demand for both metals remains very strong as investors continue to buy.