As the U.S. dollar weakens and gold shows signs of being overbought, investors are shifting their focus toward silver and platinum, pushing both metals to multi-year highs.
Platinum Hits Highest Level Since 2020
Platinum has surged to $1,305 an ounce, marking its highest price since 2020. This rise reflects growing investor interest fueled by a mix of strong industrial demand and supply concerns. Recently, platinum marked its ninth straight session of gains, reaching $1,205.85 per ounce — a 22% increase since early April, when prices were below $900. Although the metal experienced a brief pullback due to renewed gold strength amid Middle East tensions, it bounced back strongly, climbing nearly 4% in just two days this week.
Chinese demand is a major driver behind platinum’s momentum. A rebound in jewelry sales, coin, and bar purchases has helped underpin prices. On the supply side, analysts warn that platinum deficits could continue for a third straight year in 2025, adding to bullish sentiment.
Silver Breaks Above $37, Outperforms Gold
Silver has also experienced a powerful rally, soaring 32% since April when it touched a low of $28.06. Supported by the 20-month simple moving average (SMA), silver’s breakout above $37 marks its highest level in more than a decade. This performance highlights silver’s strength relative to gold, as it continues to outperform the yellow metal.
On Tuesday, silver rose another 2% even as gold declined, underscoring the widening divergence between the two metals. The gold-to-silver ratio—a common market sentiment gauge—has fallen toward 90, down significantly from over 100 during past market turmoil.
Outlook: Silver and Platinum Shine Amid Gold’s Pause
While gold cools off after its recent rally, silver and platinum remain firmly in uptrends. The weakening U.S. dollar, renewed industrial demand, and looming supply shortages are expected to support further gains. As investors rotate away from traditional safe-haven gold, silver and platinum look set to be the standout performers in the precious metals sector in the near term.
