Precious metals are soaring! Gold at 4500, platinum at 2300, silver at 72—all reaching record highs.

Precious metals are still accelerating wildly.

Driven by geopolitical risks, ongoing global supply shortages, and strong investment demand, the prices of gold, silver, and platinum have once again surged to all-time highs.

The spot price of gold has broken above $4,500 per ounce for the first time in history, having risen by more than two-thirds so far this year, and is on track for its best annual performance since 1979.

Platinum prices have also soared to a historic high above $2,300 per ounce. The metal's price has risen for ten consecutive trading days, setting the longest streak since 2017, and its cumulative gain this year exceeds 150%, with Bloomberg data showing it could post its best annual performance since 1987.

Spot silver has also seen a spectacular rally, surpassing the $70 threshold with strong momentum continuing.

This dramatic rally is rapidly transmitting to global markets. After the opening of the domestic commodity futures market, the main platinum futures contract hit the daily limit, and Shanghai silver and palladium futures both rose more than 6%.

Gold: Resonance of Safe-Haven Demand and “Currency Depreciation Trade”

Gold's robust performance this year is the result of several factors working together. In addition to geopolitical risks as a direct catalyst, deeper drivers come from shifts in macroeconomic and policy landscapes.

According to data from the World Gold Council, continued large-scale buying by central banks has provided a solid foundation for this bull market. Meanwhile, funds are constantly flowing into gold ETFs, with global gold ETF holdings increasing every month except May this year. Among these, the SPDR Gold Trust, the world's largest precious metals ETF managed by State Street, has increased its holdings by more than one-fifth this year.

Analysts say that President Trump’s radical measures to reshape the global trade system earlier this year, as well as his challenges to the Federal Reserve’s independence, have fueled the rise in gold prices. In addition, investors are actively engaging in so-called “currency depreciation trades,” moving to hard assets like gold out of concern that ever-expanding global debt will erode the long-term value of sovereign bonds and their currencies.

It is worth noting that the chief economist at Muthoot Fincorp says that recent inflows into gold ETFs have primarily come from retail investors, whose funds tend to be less sticky, which means gold prices may remain highly volatile. Nonetheless, several institutions are optimistic about gold's prospects. Goldman Sachs predicts that, under the baseline scenario, gold prices will reach $4,900 per ounce by 2026 and believes there is even greater upside potential.

Platinum: Price Surge Driven by Supply Bottlenecks and Trade Risks

Unlike gold's safe-haven attributes, the recent platinum surge is driven more by tight supply-demand fundamentals and potential trade policy risks.

According to Bloomberg, supply disruptions in South Africa, a major producer, are pushing the platinum market into a third consecutive year of shortages. At the same time, high borrowing costs have led industrial users to prefer leasing rather than outright buying platinum, further tightening the spot market. Platinum is widely used in the automotive and jewelry industries, and also in chemical production, glass, and laboratory equipment.

Trade risk is another key variable. The market is closely watching the outcome of Washington’s “Section 232” investigation, which could result in tariffs or trade restrictions on platinum. To hedge this risk, traders have stored more than 600,000 ounces of platinum in U.S. warehouses, far above normal levels.

On the demand side, platinum shipments to China have remained strong this year. The recently launched platinum contract on the Guangzhou Futures Exchange is trading at prices significantly higher than other international benchmarks, further boosting market optimism.

Silver: Structural Shortage Amid Intertwined Industrial and Investment Demand

Among the overall rally in precious metals, silver’s performance stands out as its price surge is driven by both investment and industrial demand.

On the investment side, global silver ETF holdings are continuously increasing. In major consumer countries such as India, large volumes of silver were imported for the Hindu festival of Diwali, briefly causing supply squeezes in the London benchmark market.

On the industrial side, silver is deeply embedded in global supply chains, widely used in electronics, solar panels, and medical device coatings. According to the Silver Institute, global silver demand has exceeded mine supply for five consecutive years, creating a structural shortage.

Similar to platinum, silver also faces potential trade barrier risks. Traders are waiting for the U.S. Commerce Department's investigation on whether critical mineral imports threaten national security, which could trigger tariffs on silver.

Risk Warning and DisclaimerThe market has risks; investments require caution. This article does not constitute personal investment advice and does not consider the special investment objectives, financial situations, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article fit their own circumstances. Invest at your own risk.