XAG and XPT Drive Metals Market Surge as Dollar Weakens, Gold Stabilizes – goldsilverpress

June 18, 2025

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Written by: Skerdian Meta
Date: Tuesday, June 17, 2025
Read Time: 2 min

As the U.S. dollar continues its downward trajectory and gold shows signs of being overbought, investors are increasingly turning their attention to silver and platinum. This shift has propelled both metals to multi-year highs, signaling a significant change in market dynamics.

Precious Metals Surge Amid Weakening Dollar

In recent months, silver and platinum have experienced a remarkable bullish trend. Platinum has surged to $1,305 an ounce—its highest level since 2020—while silver has broken above the $37 mark for the first time in 13 years. This rise reflects a broader pivot away from gold, with investors favoring metals that have stronger industrial applications.

On Friday, platinum marked its ninth consecutive session of gains, peaking at $1,205.85 per ounce—up 22% since early April when it was trading below $900. Although there was a temporary pullback due to gold’s spike amid Middle Eastern tensions, the new trading week has seen platinum rebound, gaining nearly 4% in just two days.

China’s Demand and Supply Risks Fuel Platinum’s Momentum

A key driver behind platinum’s recent surge has been robust demand from China. The country has seen a significant rebound in jewelry, coin, and bar purchases, which has bolstered prices. On the supply side, analysts are warning of persistent shortages, with 2025 potentially marking the third consecutive year of deficits. These fears of tightening global supply are contributing to the bullish sentiment surrounding platinum.

Silver Breaks Out with 32% Surge

Silver has also made impressive gains, climbing 32% since April when it briefly dipped to $28.06. Support from the 20-month simple moving average (SMA) near that low paved the way for an aggressive rally, pushing silver above $37 this week. This breakout marks its highest level in over a decade and extends silver’s streak of outperforming gold.

On Tuesday, silver jumped another 2% even as gold declined, highlighting the ongoing divergence in market sentiment. The gold/silver ratio—often used as a sentiment gauge—has slid toward 90, significantly lower than the extreme highs of over 100 seen during past market shocks.

Outlook: Gold Cools as Silver and Platinum Continue to Shine

While gold retreats after its recent rally, silver and platinum remain in strong uptrends. The weakening U.S. dollar, revived industrial demand, and looming supply gaps are likely to continue supporting further gains. As speculators rotate away from traditional safe havens, silver and platinum may emerge as the standout performers in the precious metals space in the weeks ahead.

About the Author

Skerdian Meta is a Lead Analyst with over 11 years of experience in market analysis and Forex trading. Before joining FX Leaders, he served as a trader and market analyst at Saxo Bank’s local branch, Aksioner. Skerdian specializes in developing trading models and hands-on trading strategies, holding a master’s degree in finance and investment.