Gold Surpasses $3,800 Amid Rising Demand
Gold price 2025 surged above $3,800 per Troy ounce on Monday, marking the 37th new record of the year. Spot gold reached $3,831 per ounce in London trading before settling slightly lower, reflecting strong investor demand and record-breaking ETF inflows.
Silver Reaches 14-Year High
Silver prices also climbed sharply, rising 2.3% to a 14-year high of $47.17 per ounce during Asian trading. The Gold/Silver Ratio fell to just above 81, its lowest level in 12 months.
Meanwhile, the iShares Silver Trust ETF (SLV) shrank from its largest size in over three years, signaling reduced institutional exposure even as silver prices continued to rise.
ETF Inflows Boost Gold Demand
September inflows into gold ETFs increased bullion backing by nearly 100 tonnes, according to the World Gold Council, just behind April’s 37-month record.
Bruce Ikemizu, Chief Director of the Japan Bullion Market Association, said:
“The $400 surge from $3,400 to $3,800 shows growing awareness among institutional investors and hedge funds of the benefits of holding gold as prices rise.”
Derivatives platform Saxo Bank also highlighted that strong ETF demand is a key driver behind gold’s continued gains.
Currency and Bond Market Impact
The US Dollar Index fell 0.2%, while US Treasury bond prices rose, pushing 10-year yields down 0.3 percentage points. London gold prices surged 1.6% to record highs of £2,850 and €3,268 per Troy ounce, while Shanghai Gold Exchange prices reached ¥862 per gram.
Despite these gains, gold in China traded at a $50-per-ounce discount to London prices, signaling weaker domestic demand relative to global supply.
Other Precious Metals Climb
- Platinum rose 3% to a 12-year high of $1,628 per ounce and hit ¥7,598 per gram in Japan.
- Silver set new records in Japanese Yen above ¥224 per gram and 45-year highs in Euros at €40 per ounce.
Gold prices for Japanese retail investors crossed the psychological level of ¥20,000 per gram including consumption tax.
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