Gold Smashes Records, Silver Surges to 13-Year Highs Despite Stronger Dollar

Precious metals are defying expectations this week, powering higher even as the U.S. dollar strengthens and Treasury yields climb. Gold has set fresh all-time highs above $3,500 per ounce, while silver is trading at levels not seen since 2011. Analysts say this breakout could mark the start of the next major leg in the metals rally.

“Investors are steadily increasing their gold allocations, particularly with Fed rate cuts on the horizon,” wrote Joni Teves of UBS. “Our base case is that gold continues to push into record territory over the coming quarters.”

Teves highlighted that a lower-rate environment, softening economic data, and persistent geopolitical risks are all reinforcing gold’s role as a safe-haven diversifier.

Marc Chandler, managing director at Bannockburn Global Forex, noted that U.S. yields jumped after the long holiday weekend, with the 10-year Treasury yield climbing back above 4.28%. Yet, the renewed strength in the dollar hasn’t capped gold’s run. “Gold touched $3,508.75 in Asia before easing to the $3,470 range in Europe,” he said, adding that silver’s rally has been equally remarkable.

Crude oil prices also spiked, with October WTI soaring nearly 3% to $66 per barrel—its highest since early August—while markets await this weekend’s OPEC+ meeting. Most expect the group to hold production steady.

Rhona O’Connell, Head of Market Analysis for EMEA and Asia at StoneX, said silver led the charge this week. “Momentum really kicked in after silver surged through $40, helped by reports it could be added to the U.S. list of Critical Materials,” she told Kitco News. “Gold followed suit, piggybacking on silver’s strength as traders piled in.”

Still, she cautioned that silver is overbought in the short term. “Longer term, fundamentals are extremely constructive—green energy, AI, and electrification will all drive demand. But after the sharp move above $40, a period of correction and consolidation is likely.”

Political tensions may also be feeding the rally. Peter Schiff of Europac argued that concerns over potential Supreme Court rulings that could erode Federal Reserve independence are spooking markets. “The risk that FOMC members could be subject to presidential dismissal is driving gold and yields higher,” he wrote on X.

Nick Cawley of Solomon Global said the outlook remains bullish, predicting gold could test $3,750 before year-end and silver could reach $44. “Gold’s rally is fueled by ongoing foreign central bank demand and the global move away from Treasuries. Silver is up 40% year-to-date, driven by industrial demand and safe-haven flows.”

Cawley added that rate cuts, geopolitical tensions, and silver’s growing role in the green economy all point to new highs in 2025 and beyond. “De-dollarization is a major theme here. Buyers continue to control price action.”

As of Tuesday afternoon, spot gold traded at $3,536.33 per ounce, up 1.63% on the day, while silver hovered near $40.91, gaining 0.47% and testing resistance at $41.