While Gold retained a strong upward trend in 2025, which was traded just below the all time of $ 2,790.17, silver was left behind. Gold has benefited from the demand for safe haven in the midst of a weaker American dollar and falling treasury yields, while silver is bound to industrial demand opposite the headwind. The gold/silver ratio emphasizes this inequality, which suggests that silver is undervalued in relation to gold.
The Bullish Momentum of Gold is supported by geopolitical risks, inflation problems and expectations for the stable policy of the Federal Reserve. A weaker dollar, which fell 0.2% on Monday, has further increased Gold’s profession on international buyers. With gold in the holes of $ 3,000, stability can offer some indirect support for silver prices.
Industrial demand pressure silver
The performance of Silver is strongly influenced by industrial demand, especially in China and the solar energy sector. Concern about the economic growth of China, in combination with constant uncertainty about the trade policy of the US-China, have weighed a sentiment. In addition, President Trump’s rates on solar technology and uncertainty about energy policy have introduced risks for the long -term use of Silver in green technologies.
These factors have tempered the price repair of Silver, even if gold is well supported by wider macro-economic trends.
This week’s Federal Reserve Meeting is a crucial engine for both gold and silver markets. Although a rate reduction is unlikely, traders will focus on signals with regard to future monetary policy. A Dovish tone could further weaken the dollar and stimulate silver and gold.