Silver extended its record-breaking rally on Tuesday, climbing past the $70-per-ounce mark, while gold eased from earlier gains after stronger-than-expected US economic data prompted some profit-taking across precious metals.
Silver prices
Spot silver rose 0.7% to $69.50 per ounce by late evening after touching an intraday record high of $70.70. The metal’s year-to-date gains now stand at about 123%.
Market analysts said silver’s rally continues to be driven by a prolonged supply deficit and rising industrial demand. The silver market has been in deficit for roughly five years, with demand increasingly supported by manufacturing and technology-related uses.
Analysts cautioned that while silver could target higher levels in the near term, year-end profit-taking may lead to periods of volatility. Safe-haven demand, expectations of a weaker US dollar, and lower bond yields have also supported prices.
Gold and other metals
Spot gold edged up 0.1% to $4,449.99 per ounce after hitting a fresh record high of $4,497.55 earlier in the session. Gold prices are up roughly 70% this year, supported by geopolitical tensions, US interest rate cuts, strong central bank buying, and robust investment inflows. US gold futures for February delivery rose 0.3% to $4,480.20 per ounce.
Platinum jumped 3.9% to $2,202.30 per ounce, its highest level in more than 17 years, while palladium climbed 2.8% to a three-year high of $1,808.25, tracking strength in gold and silver.
US economic growth
The US dollar rebounded after data showed the economy expanded at its fastest pace in two years during the third quarter, supported by strong consumer spending. The data also showed solid export growth, which helped narrow the trade deficit.
While stronger economic growth typically supports the dollar, it can weigh on dollar-denominated metals by making them more expensive for overseas buyers. Analysts also noted that rising living costs and a recent government shutdown could weigh on economic momentum in the months ahead.
Geopolitical developments
Geopolitical risks remain elevated after US President Donald Trump last week ordered a blockade of sanctioned oil tankers entering and leaving Venezuela, while also saying he was not ruling out the possibility of a conflict with the country.
In a separate development, the US administration announced plans to impose tariffs on Chinese semiconductor imports beginning in June 2027.
