The precious metals market is fluctuating again. While gold prices are hovering near all-time highs, silver and platinum prices have shown a sharp increase, driven by technical breakthroughs and a surge in physical demand.
According to Bloomberg on the 6th, silver prices in the Asian market reached $36.06 per ounce, setting a new high since 2012. Platinum also broke through $1,146, confirming its peak in 10 years. On the same day, the July silver futures on the New York Mercantile Exchange (COMEX) closed at $35.81, having risen to $36.27 during the trading session.
This price surge is analyzed as a result of three combined factors: △weak dollar △global tariff uncertainty △increased industrial demand. In particular, as silver demand in India and platinum demand in China remain robust, investment sentiment in the precious metals market is rapidly recovering.
Nikki Shields, head of metal strategy at MKS Pamp, said, "If silver maintains over $35 per ounce, it could serve as a strong conversion signal," and predicted that "individual investors who have been waiting will start flowing in again."
Traditionally, gold, silver, and platinum tend to move together. However, this current bull market distinctly highlights the industrial demand factors for each metal. Silver is an essential metal for solar panel manufacturing, with demand rapidly expanding in China. Platinum has high utility as an automotive exhaust purification device (PGM), and its demand is increasing with the global automotive industry's recovery.
In contrast, gold has already risen more than 40% in the past year, largely reflecting its potential. This week, the gold spot price recorded $3,358.53 per ounce, showing a slight increase (0.2%), but did not demonstrate the same elasticity as silver and platinum.
The ETF market trend also supports this. Silver ETFs have increased their holdings by about 8% since February, and platinum ETFs have expanded by over 3% since mid-May. This indicates that investment sentiment in the precious metals market is gradually recovering.
Meanwhile, ahead of the US employment indicator release, higher-than-expected unemployment claims are stimulating expectations of a Federal Reserve rate cut. A rate cut is a positive factor for precious metals, which do not generate interest income. Therefore, precious metal prices are likely to remain strong in the short term.
However, experts are not ruling out the possibility of a long-term slowdown in silver and platinum demand. If the supply shortage remains a short-term issue, they predict the market could enter a technical adjustment phase.
