Gold and Silver Pull Back After Record Highs

 

Gold and Silver Pull Back After Hitting Record Highs

(Bullion News Network) – Precious metals pulled back on Friday to end the week. Gold lost over $130 in the early trading hours before paring its losses to just over $75 per troy ounce before markets closed. The spot price of silver dropped by more than $2.20/ozt, erasing the weekly gains one day after securing a new all-time high above $54 per troy ounce. The price action heavily favored gold, driving the gold-silver ratio over two points higher to just under 52:1. Platinum group metals also retreated, with platinum and palladium losing over $100/ozt and more than $140/ozt, respectively. 

The gold and silver pullbacks come just a day after both metals set fresh all-time highs. Gold prices soared earlier this week amid rising safe haven demand, crossing $4,300 per troy ounce for the first time ever. Silver also logged a new high on Thursday, peaking at more than $54 per troy ounce before prices retreated on Friday. Silver prices remain in a state of deep backwardation, a condition that may signal heightened demand for physical silver deliveries. 

The U.S. government concluded the 17th day of its shutdown on Friday, and some analysts say it could become the longest shutdown in American history. The shutdown began on October 1st after Democrats and Republicans in Congress failed to secure the 60-vote minimum required to pass a routine spending and appropriations bill. Despite over ten votes, the Senate has been unable to pass the Republican spending bill. As of Friday, the shutdown was the third longest in United States history. Precious metals gained considerably throughout the shutdown as investors turned to safe haven assets in a bid to hedge against uncertainty.

Gold and silver prices both set fresh all-time highs earlier this week before being pulled back down to Earth on Friday. Silver peaked at an all-time high of over $4,375 per troy ounce Thursday, but Friday saw a loss of over $75 per troy ounce for the metal. Gold’s losses peaked at more than $130/ozt earlier in the trading day, but bulls managed to claw their way back and pare those losses down to just a bit over $75/ozt by market close. U.S. President Donald Trump told reporters on Friday that full-scale tariffs on China may not be sustainable, dealing a measurable blow to the uncertainty that has helped propel gold to record heights throughout 2025.

Platinum group metals pulled back as well. Platinum extended the gap between itself and palladium despite the losses, shedding just over $100 per troy ounce compared to palladium’s near-$150/ozt pullback. Both platinum and silver gained earlier this month after China’s September announcement that it plans to cut pollution rates in the country by 10% or more this decade. The move is expected to drive demand for silver and platinum, two metals used in the manufacture of solar energy panels and other green energy technologies.

With the government shutdown ongoing, most economic data reports will be unavailable heading into next week. If and when the shutdown ends, fresh inflation and U.S. job market reports will play a role in interest rate cut speculation prior to the Federal Reserve’s October meeting. Gold and silver gained in the aftermath of September’s Fed meeting, which saw the first 25 basis point cut of 2025. Markets are highly confident that another rate cut is coming in October; CME FedWatch projects a 99% probability that the FOMC will vote to cut rates by 25 basis points, as well as a 1% chance that they opt for a more aggressive 50 bps cut. Safe haven assets like gold and silver tend to retain or gain value during periods of falling interest rates, since cutting rates is often an inflationary policy. 

Gold and silver pulled back on Friday after setting new highs earlier in the week. The gold-silver ratio increased after silver took a more severe percentage loss. Platinum and palladium both lost to end the week, with platinum expanding the difference between itself and palladium. The Senate won’t meet again until Monday, extending the U.S. government shutdown into another week.