Precious Metals Break Out: Gold Hits Record Highs, Silver Soars to 2011 Levels
Tuesday, September 16th 2025
Despite a stronger U.S. dollar and climbing Treasury yields, precious metals are defying the odds. Gold has surged to fresh all-time highs while silver is trading at levels last seen more than a decade ago. Analysts say this breakout could signal the start of the next major leg higher for both metals.
Gold and Silver Defy Dollar Strength
Spot gold last traded at $3,536.33 per ounce, up 1.63% on the session, while silver closed at $40.914 per ounce, advancing 0.47%.
“Investors are steadily increasing gold allocations as Fed rate cuts draw closer, and that is keeping prices well supported,” explained Joni Teves of UBS. She added that UBS expects gold to “continue setting new highs in the coming quarters,” fueled by softer data, a weaker rate environment, and ongoing geopolitical risks.
Rising Yields, Stronger Dollar – Yet Metals Hold Firm
The U.S. dollar staged a strong comeback after the holiday weekend, climbing 0.7% or more against most G10 currencies, while Treasury yields also moved higher.
- The 10-year U.S. yield rose above 4.28%, up 5.5 basis points.
- The 30-year bond yield jumped 4–5 basis points in both the U.S. and Europe.
“Despite higher yields, gold touched $3,508.75 in Asian trade before consolidating near $3,470,” said Marc Chandler of Bannockburn Global Forex. “Even crude oil joined the rally, with WTI up nearly 3% to its best level since early August.”
Silver Leads the Charge
This time, it was silver that lit the fire.
Rhona O’Connell, Head of Market Analysis at StoneX, said silver’s breakout above $40 was partly sparked by reports that the U.S. may consider placing the metal on its Critical Materials list.
“Gold followed suit in Asia, essentially piggybacking on silver’s momentum,” O’Connell noted. Still, she cautioned that silver is “overbought” above $40 and could see a short-term correction before resuming its broader uptrend.
O’Connell also flagged political tensions around the Fed as another driver. “The White House’s aggressive stance toward the central bank continues to unsettle markets, giving both metals additional support.”
Political Uncertainty Fans the Flames
Concerns over Federal Reserve independence are also in play.
Economist Peter Schiff warned that a Supreme Court ruling could reshape the Fed’s structure by allowing presidents to dismiss FOMC members at will. “The mere prospect of weakened Fed independence is helping push gold higher,” Schiff wrote in a recent post.
Analysts See Higher Targets Ahead
The rally has sparked bold forecasts:
- Nick Cawley of Solomon Global believes gold could test $3,750 per ounce by year-end, while silver may climb above $44.
- He highlighted foreign central bank demand and de-dollarization as long-term drivers. “Gold remains the ultimate safe haven as Treasuries lose appeal, while silver is up 40% year-to-date thanks to industrial demand and its green energy role,” he said.
Cawley added that persistent geopolitical risks, accommodative monetary policy, and investor diversification are “laying the foundation for record-setting moves in 2025 and beyond.”
Outlook: A Multi-Metal Rally in Motion
With gold comfortably above $3,500 and silver eyeing a decisive break past $41, the momentum behind precious metals appears strong.
As traders weigh Fed policy, political risks, and global demand trends, analysts agree that both gold and silver are firmly in bull territory – and that the best may still lie ahead.
