Silver Jumps to $37, Longest Split from Gold Price Since 1999
Tuesday, 6/17/2025 13:53
SILVER LEAPT but the price of gold struggled in London on Tuesday, extending this stretch of diverging prices to the longest in the 21st Century so far as the more industrially useful precious metal broke 13-year highs above $37 per ounce.
Jumping by 2.0% today, silver has now gone in the opposite direction to the Dollar price of gold for 5 sessions in a row, the first such run since April 2019 and only the 6th five-day run
since the turn of the millennium.
Historical data show silver and gold prices going in the same direction on 78.9% of all trading days over the past half-century, and 75.7% of the time over the past 12 months.
Gold and silver last diverged for 6 days running in December 1999. Before that, the previous 6-session run came in March 1973.
"Despite gold's ratio to silver and platinum moving in favour of the white metals recently," says analysis from Swiss bank and London bullion clearers UBS, "it is hard to know for sure whether market participants are doing ratio trades.
"[But] it is also hard to rule out given the price action."
The
Gold/Silver Ratio today fell toward 91, holding above last Tuesday's 10-week low of 90.5 but sharply beneath
the 'depression-era' rating for safe haven gold versus industrially useful silver of 100-plus reached during the Trump trade tariffs shock of April and May.
"Gold's pause bodes well for the next leg higher," says UBS, because "bullish gold sentiment is unchanged."
"Gold is on track to target [April's all-time high] at $3500 again," agrees strategist Nicky Shiels at Swiss bullion refining and finance group MKS Pamp, because the outbreak of direct Israel-Iran conflict gives "a new catalyst with nuclear/WWIII risk.
"Industrial metals – especially overbought ones like platinum – should be pressure tested as traditional havens (bonds, US Dollar, gold) take preference over industrials/cyclicals."
Like the price of
industrially useful silver however, base metals copper and aluminum rose for a 2nd session running on Tuesday, while global stock markets also rose despite the worsening wars and death-tolls in Iran, Israel, Gaza and Ukraine.
Over the past month, silver's daily price moves in US Dollar terms have shown the same strong, positive correlation with copper prices as they have shown with gold, giving an r-squared of 51.8%.
Brent crude meantime spiked Tuesday above $78 per barrel − its highest since late-January and more than 30% above April and May's 4-year lows − following a threat from Tehran to close the Strait of Hormuz, a vital oil shipping route from Arabia to Asia, in protest at the Israeli attacks on its nuclear research, military and oil infrastructure sites starting last Friday.
With gold prices trading $10 below the $3400 per ounce mark today, platinum rallied above $1260, a new 4-year high when hit this time last week.
Silver priced in UK Pounds today hit a new 14-year high above £27.40 per Troy ounce, while gold slipped back through £2500.
Euro silver meantime touched €32 per ounce for the 4th time since October as the Euro gold price traded €100 below April's record peak of €3035.
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