Precious metals saw significant gains on Friday, September 26, 2025, with gold maintaining its strong performance, silver nearing its all-time record, and platinum surging to multi-year highs. The rally appears driven by physical market dynamics and new green technology initiatives in China.
Key Takeaways
- Silver traded at over $45 per Troy ounce, just 10% below its historical peak.
- Platinum reached 12-year highs in USD and 14-year highs in other major currencies.
- China's push for green technologies, including wind, solar, and electric vehicles, is fueling demand for platinum group metals and silver.
- Despite market chatter about lower rates, Federal Reserve officials express caution on inflation and labor market health.
Platinum's Sudden Surge and Global Valuations
Platinum prices continued their upward trend on Friday, reaching significant milestones across various currencies. The industrial precious metal climbed above $1540 per Troy ounce in US Dollars, marking a 12-year high. In other major global currencies, platinum also saw notable increases.
It achieved fresh 14-year highs when priced in Chinese Yuan, Euros, and UK Pounds. Specifically, it traded above ¥345 per gram, €1330 per ounce, and £1150 per ounce. In Japanese Yen, platinum is currently challenging its all-time peak of ¥7500 per gram, a level last seen in early 2008.
Market Context
ICBC Standard, a Chinese bank and London bullion clearer, noted that Thursday's sharp increase in platinum prices did not seem to be driven by speculative futures trading. Instead, it occurred during a period of low liquidity at the start of London bullion business. This timing suggests that the rally was more influenced by direct market activity rather than financial derivatives.
Silver Approaches All-Time Highs
Silver also experienced a strong performance on Friday, trading above $45 per Troy ounce. This price point is notable, having been reached at London's benchmarking auction on only seven previous occasions in history. The current price stands approximately 10.0% below its all-time spot market highs of $50, which were recorded in January 1980 and April 2011.
For investors in the Eurozone and the United Kingdom, silver reached new record levels. It traded above €38.50 per ounce, marking new 45-year highs for Euro investors. In the UK, silver achieved new all-time highs above £33.70 per ounce ahead of Friday's midday London auction.
Did You Know?
- The $50 spot market high for silver was reached twice: in January 1980 and April 2011.
- Gold has recorded four consecutive weekly record prices.
Influence of China's Green Technology Push
Industry experts link the recent surge in white metal prices, including platinum and silver, to China's aggressive push for green technologies. ICBC Standard highlighted that "market chatter" points to a delayed response to these policy developments.
"The rally seems tied to thin trading activity and the spill over from Chinese policy headlines, rather than action in EFPs or forward markets," ICBC Standard stated, indicating that the lack of movement in New York 'exchange for physical' contracts or London borrowing costs suggests a physical market driver.
China's significant expansion in wind and solar energy, along with the growth of new energy vehicles, has increased demand expectations for platinum group metals and silver. These metals are critical components in many green technologies, including catalytic converters, solar panels, and electric vehicle batteries.
Gold's Performance and Inflation Concerns
While platinum and silver saw new highs, gold maintained its upward trajectory. It was on track for its fourth consecutive weekly record price on Friday. Gold prices in the Euro and UK Pound, although not setting new London auction highs since Tuesday, touched fresh spot-market records on Wednesday and Thursday, peaking at €3224 and £2818, respectively.
Market participants are also closely watching US PCE inflation data, which was due on Friday. Traders hope for softer inflation figures, as this could potentially lead to lower interest rates. However, recent economic data presented a mixed picture.
Federal Reserve's Stance on Inflation and Labor Market
Inflation on the core PCE index, the US Federal Reserve's preferred measure of living costs, was revised higher on Thursday to 2.6% per year for the April-to-June quarter. Consensus forecasts for Friday's August data anticipated core PCE to show inflation of 2.9%. This would represent the highest inflation since March 2024, excluding a peak near 3.0% in February.
Federal Reserve officials have expressed caution regarding the inflation outlook and the health of the labor market.
Jeffrey Schmid of the Dallas Fed stated, "My view is that inflation remains too high while the labor market, though cooling, still remains largely in balance." He refuted analyses suggesting immediate rate cuts.
Chicago Fed President Austan Goolsbee echoed this sentiment:
"Heavy front-loading of cuts before you know whether this is all there's going to be on inflation and before you know whether this inflation is going to be persistent runs a risk of a mistake." Goolsbee also noted that a substantial drop in immigration could have an inflationary component, especially in service sectors.
Differing Views on Rate Cuts
Despite some calls for rate reductions, Fed Chair Jerome Powell indicated earlier in the week that "inflation has risen recently and remains somewhat elevated." However, other Fed members hold different views. Voting member Michelle Bowman stated, "we have a more fragile labor market than we were expecting to see." This suggests that the Fed might consider further rate cuts.
Bowman's comments align with the Fed's average 'dot plot' projection from last week, which indicated the possibility of another two quarter-point cuts before Christmas. These differing opinions highlight the ongoing debate within the central bank regarding the appropriate path for monetary policy.
China Gold Discount
Gold prices in China today showed an extended discount compared to global quotes. This suggests weaker demand for the safe-haven precious metal in the world's largest consumer nation. The Dollar price of gold in London traded around $3750 per Troy ounce, showing a weekly rise of 2.3%. This price is $40 below Tuesday's new all-time gold price high.
