Gold Moves Sideways, Silver’s Run Continues To Start First Full Week of 2025

 

Gold Moves Sideways As Silver Claims Third Consecutive Daily Gain 

(Bullion News Network) – The spot price of gold moved little to start the first full week of 2025, losing a few dollars after market open but remaining stable near $6,640/ozt until the end of the day. Silver moved in the opposite direction, gaining $.40 right at market open and then holding steady throughout the day. This is the third consecutive day of gains for the precious metal, which clawed its way back from a monthly low of $28.84/ozt to reclaim the $30 level. The price action drove the gold-silver ratio sharply lower. The GSR briefly peaked at a multi-month high of 91:1 before falling on today’s price action to 87.81:1. If this lopsided price action continues to favor silver, the gold-silver ratio still has room to fall before hitting a yearly low. 

High geographical demand and geopolitical uncertainty remain key price motivators for silver heading into 2025, but volatility remains sticky in all precious metal markets. Traders are still grappling with a slew of geopolitical and economic stressors, including President-elect Donald Trump’s proposal for universal tariffs, an inconsistent stock market, and ongoing geopolitical conflicts in both Europe and the Middle East. Fear remains a strong motivator in markets, according to CNN’s Fear and Greed Index. This is traditionally a strong signal for gold and silver, two safe haven assets that often thrive in uncertain environments. 

The gold-silver ratio will likely be a key metric for traders to watch as markets brace for a chaotic start to 2025. The GSR climbed steadily throughout December, peaking at 91:1 on New Year’s Eve before reversing course to begin the new year. This ratio is now down from that 91:1 peak by over three points. If silver continues to climb or gold takes another hit, the floor for the gold-silver ratio is likely very low. In 2024, the lowest gold-silver ratio was 73.01:1, when gold peaked at $32.03/ozt and gold prices dropped to $2,338.76/ozt. 

For now, silver seems to have sustained its first major test, crossing the $30/oz line after struggling at the end of 2025. The precious metal saw quite a bit of price appreciation in 2024, climbing to a peak of $34.86 per troy ounce after beginning the year in the $23-23.50 range. The last two months of the year were more challenging, as silver dropped from its $34.86 peak to a local low of below $29/ozt. Gold followed a similar pattern, although the precious metal experienced considerably less volatility throughout the year. Gold’s highest closing price of the year was $2,786.44 per troy ounce on October 30th, which is over $750 higher than the metal’s 2024 opening price. 

Precious metal traders are likely closely eyeing a few key indicators for cues on which direction each metal will head during Q1 2025. First, Donald Trump’s actions as President – especially as they relate to his promises of universal tariffs – will play an important role in safe haven trading throughout the next year. Second, precious metal markets are likely to remain highly susceptible to price swings in response to wartime escalations in Gaza and Ukraine. Budding tensions in other Middle Eastern countries could also provide tailwinds to safe haven precious metals. 

Finally, economic data reports are likely to impact the prognoses for gold and silver throughout the first quarter of the year. Inflation reports will drive the Federal Reserve’s interest rate decisions, which drove significant speculation among precious metal traders in 2024. 

This has clearly been a fiery start to 2025 for precious metal investors – but where will markets go from here?