Gold Recovers After Thursday Pullback; Silver Tests $50 Resistance

 

Gold Recovers From Thursday Pullback as Silver Tests $50 Resistance

(Bullion News Network) – After a mild pullback on Thursday, Friday saw the spot price of gold cross the $4,000 line once again. Gold gained over $40 per troy ounce on Friday, recouping some of the metal’s losses after Thursday’s drop. Gold prices declined by more than $60/ozt Thursday in a pullback that came one day after the precious metal set an all-time high of $4,058.98 per troy ounce. Today’s price action mitigated the damages, pushing gold past the $4,000 line for the second time this year. Uncertainty continued to drive investors toward safe haven assets like gold as the United States prepared for another week of its government shutdown.

Silver prices continued to gain on Friday, with the precious metal adding over $0.80 per ounce to its spot price as it tested the $50/ozt resistance. Silver nearly secured an all-time intraday high on Thursday, briefly peaking at over $51 per troy ounce before falling back down below the $50/ozt line. Friday saw the spot price of silver jump by more than $0.80 per troy ounce, testing the $50 challenge and offsetting Thursday’s afternoon slam. The price action on Friday favored silver, driving the gold-silver ratio nearly half a point lower to below 80:1, close to a 2025 low.

The gap between platinum group metal prices continued to narrow at the end of the week. Palladium lost over $10 on Friday after a $30/ozt pullback Thursday. On Wednesday, palladium gained ground against platinum, adding around $100 per troy ounce to its spot price and moving to soften the gap between platinum and palladium. Platinum also retreated, losing nearly $30/ozt to end the week, leading to a total loss of around $60 per troy ounce since the metal’s peak at a year-to-date high of $1,660 on Wednesday.

The United States entered the tenth day of its ongoing government shutdown, which began on October 1st. The shutdown, triggered after Republicans and Democrats in Congress failed to reach the 60 votes required to pass a routine spending bill, underscores a growing political divide in the United States. Precious metal prices increased following the beginning of the shutdown, and both gold and silver logged fresh highs as the government shutdown continued. Geopolitical and economic uncertainties remained a major demand driver for safe haven assets throughout 2025. Markets also expect that the Federal Reserve will vote to cut interest rates by another 25 basis points at the end of October. CME FedWatch now projects a 97.8% probability that the FOMC will cut rates in October, up from 94.1% on October 9th and 73.9% in September.

Rate cut speculation drove safe haven asset prices higher in both September and October. Assets like gold and silver tend to appreciate during periods of falling interest rates, as cutting rates can be inflationary and precious metals are considered inflation-resistant assets. Gold and silver gained following the Fed’s September cut, which was the first interest rate reduction of 2025. With another cut in October seeming increasingly unlikely, analysts say interest rate speculation could remain a driving factor in the precious metals market throughout the month.

Gold and silver closed the Friday trading day higher on a range of geopolitical and economic stressors. Safe haven demand remained elevated, with gold mitigating a portion of Thursday’s losses and adding $40 to its spot price. Silver challenged the $50/ozt resistance, adding over $0.80 to its spot price per ounce. The gold-silver ratio slipped by nearly 0.5 points, falling to nearly a 2025 low. Next week, traders will likely look for more cues on whether the government shutdown will end, which could have a direct impact on safe haven demand stateside.