Gold and Silver Hit Record Highs as Historic Run Continues

 

Gold and Silver Jump Again as Government Shutdown Continues

(Bullion News Network) – Gold logged another record day on Wednesday, adding nearly $60/ozt to its spot price and crossing $4,000 per troy ounce for the first time ever. Geopolitical uncertainty continued to impact the market midweek. The U.S. entered the eighth day of its government shutdown on Wednesday, driving demand for safe haven assets as investors remained concerned about growing political division in the country. The spot price of silver also soared to new heights, peaking at over $49.50 per troy ounce on Wednesday. Silver and platinum group metal prices continued to be driven by speculation surrounding China’s new green energy initiative, which is expected to increase demand for both metals as the country increases production of solar energy panels, which use both platinum and palladium.

The United States government remained shut down on Wednesday, marking the eighth day of the shutdown, which began on October first. Gold gained nearly $200 per troy ounce in the first eight days of the shutdown. Silver prices also increased, with the precious metal adding more than $1.50 per troy ounce to its spot price. The price action favored silver on Wednesday, driving the gold-silver ratio more than half a point lower to just over 82.5:1. Silver prices are being primarily driven by speculation surrounding China’s new green energy initiative, unveiled in September. China pledged at a United Nations meeting to reduce its pollution numbers by over 10% in the next decade, a move that isexpected to expand China’s booming solar energy sector. Silver is a major component in the construction of solar energy cells, so the Chinese green energy initiative has the potential to drive demand for silver higher.

Palladium prices continued to surge on Wednesday, with the precious metal logging its fourth consecutive gain. The price of palladium increased by more than $100 per troy ounce before markets closed on Wednesday. This price action helped further tighten the gap between platinum and palladium, two metals that are primarily used in the production of catalytic converters for vehicles. Palladium prices are up by more than $550/ozt, or over 61%, so far in 2025. The spot price of platinum also gained on Wednesday to a lesser extent, which the metal gaining over $30 per troy ounce.

Rate cut speculation also likely drove precious metal prices higher on Wednesday. The Federal Reserve is widely expected to cut rates by another 25 basis points when it meets at the end of October. CME FedWatch projects a probability of 92.5% that the FOMC will vote to cut rates again in October. Inflation-resistant safe haven assets like gold and silver tend to retain value during periods of falling rates, since cutting interest rates can lead to worsening inflation numbers. Gold and silver prices gained following the Federal Reserve’s decision to cut interest rates in September and continued to climb as markets readied for another likely cut heading into October.

Barring a delay if the government shutdown continues, markets are looking forward to a fresh inflation reading with next Wednesday’s Consumer Price Index (CPI). This report may shed more light on how the FOMC is likely to vote at its October meeting. Falling or stable prices could give the Fed the justification it needs to cut rates again later this month, but a hotter-than-expected inflation reading may give the FOMC pause as it attempts to balance price stability with a cooling labor market. Analysts believe that the U.S. employment market continued to cool or stagnate in September, but the government shutdown prevented the release of an official U.S. employment market report. The tone and tenor of September’s job market performance is expected to play an important role in the Federal Reserve’s October meeting. A series of cooling labor reports drove the FOMC to cut rates in September, so traders anticipate that another troubling employment report could justify a second rate cut this month.

Gold set another all-time high on Wednesday at over $4,000 per troy ounce. Silver continued its historic run, setting a 14-year intraday high of over $49.50 per troy ounce. The gold-silver ratio fell by more than half a point, and the spot price of palladium continued to climb, gaining over $100 per troy ounce amid a market-wide run driven by speculation surrounding how Chinese energy initiatives will impact demand in 2026.