Gold and silver spot prices declined sharply on Friday, with gold falling to $3,274 per ounce and silver retreating to $36.07 per ounce, both registering losses exceeding 1.5%. The downturn was driven by an easing of geopolitical tensions—most notably a ceasefire between Israel and Iran—combined with a modestly stronger U.S. dollar and improved global risk sentiment, which dampened safe-haven demand. Despite this week’s pullback, gold and silver remain up over 25% and 24% respectively year-to-date, underpinned by robust central bank gold buying and persistent structural deficits in the silver market. Silver’s industrial demand continues to surge, especially from the renewable energy and electronics sectors, and mining supply remains constrained, reinforcing the metal’s long-term bullish outlook.
In contrast to gold and silver, platinum has emerged as the standout performer in 2025, surging to an 11-year high of $1,416 per ounce on Thursday before settling at $1,347 per ounce Friday, still up more than 41% year-to-date. This rally is underpinned by a deepening supply deficit—projected at nearly 1 million ounces for 2025—driven by declining South African output, logistical challenges, and robust demand from both the automotive and jewelry sectors. The platinum market is experiencing pronounced tightness, as evidenced by spot prices trading well above forward prices (backwardation) and lease rates soaring above 13%, signaling acute physical scarcity. Chinese investment demand, particularly for jewelry, has surged, while the auto industry’s need for platinum in catalytic converters and growing interest in hydrogen fuel cell technology further strain supply. With structural deficits expected to persist through at least 2029 and limited new mining projects on the horizon, platinum’s bullish fundamentals stand in stark contrast to the recent softness in gold and silver, making it the top-performing precious metal of the year.
