On Tuesday, gold hit a record high of $3,508.50 an ounce, before paring gains to rule around $3,490
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Gold continues to shine globally, touching a new high on Wednesday, on concerns over the world economy, inflation and global geopolitical tensions showing no signs of easing. At the same time, silver has begun to outperform gold.
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.”
ING Think, the financial and economic wing of Dutch multinational financial services firm ING, said rallies in gold and silver are underpinned by growing expectations that the US Federal Reserve is poised to resume interest rate cuts with three weeks to go until the next policy meeting. “The US jobs report this Friday will be the focus for the market,” it said.
Silver opened the door
Ross Norman, CEO of Metails Daily, said silver opened the door for gold’s new high, breaching the critical resistance at $40 – a 14-year high.
BMI, a unit of Fitch Solutions, said that since mid-April, gold has largely traded sideways between $3,200 and $3,400 an ounce through August. “Despite trade tensions easing (with more trade deals being announced) and political risk abating (with the ceasefire between Iran and Israel), gold showed little inclination to decline,” it said.
On Wednesday, gold hit a record high, topping $3,550 an ounce and ruling around $3,558. Gold futures in the US, however, topped $3,600 to rule at $3,621. Silver hit an 11-year high of $41.23 an ounce at 7.45 pm IST. In India, gold (.999 fineness) was quoted at ₹1,06,020 per 10 gram, while silver ruled at ₹1,23,200 a kg in Mumbai.
Hoey said IBV was witnessing a sharp rise in clients purchasing physical gold and precious metals to secure their investments, and “an increase in investors choosing to immediately store assets in private vaults where they are protected, accessible, and insulated from broader market volatility”.
Higher conviction
Norman said gold’s bull run has been “the most extraordinary”, in that it has been a low participation one as far as western investors were concerned (institutional and retail). “… things clearly look very different and conviction is much higher,” he said.
Research agency BMI said it was raising its 2025 gold price forecast to an annual average of $3,250/oz from $3,100/oz previously. “We are neutral to slightly bullish towards prices for the remainder of 2025. Prices have averaged $3,134/oz in the year-to-date as of August 15,” it said.
“Tariff tensions, along with questions over the Fed’s independence and a weakening dollar, are adding to the tailwinds for the precious metals,” said ING Think.
It said silver continues to outperform gold, with the gold/silver ratio narrowing to 85 as of Monday, down from its recent high of 104.7 on April 24.
To remain elevated
“This brings the ratio closer to its long-term average. Silver has rallied more than 40 per cent this year, with ETF holdings expanding for a seventh consecutive month in August to stand at 806 million ounces at the end of the month. This is the longest run of inflows since 2020,” the ING think-tank said.
Referring to gold’s current status, BMI said on the one hand, lower bond yields and a weaker dollar in recent weeks failed to ignite further rallies in gold. “On the other hand, despite trade uncertainties and geopolitical tensions diminishing, gold remains reluctant to collapse,” it said.
BMI said that gold prices will remain elevated in the coming weeks as the market braces for a US Fed rate cut in September. “Even then, we believe the upside for gold following the rate cut will be limited, with most of it already priced in,” it said.
“We expect gold to trade between $3,200 and $3,600/ounce for the rest of 2025. In the longer term, we expect gold prices to remain elevated in the coming years compared to pre-Covid levels,” said the research agency.
Published on September 3, 2025