Silver breached the $45 psychological mark on COMEX while gold hovered near all-time highs on September 29, 2025, driven by a weaker dollar and growing expectations of continued Federal Reserve rate cuts.
Traders are pricing in a 90 per cent probability of a Fed rate cut in October and a 65 per cent chance of another reduction in December, according to Manav Modi, Analyst – Precious Metal Research at Motilal Oswal Financial Services Ltd.
The U.S. Commerce Department reported the Personal Consumption Expenditures Price Index rose 0.3 per cent in August, in line with expectations.
“Silver is where the real upside lies,” said Sourav Choudhary, Managing Director at Raghunath Capital. “With the gold-to-silver ratio stretched at 87:1 versus its 63:1 average, silver is poised for an explosive breakout.. silver could easily multiply fourfold from here.”
Gold has rallied 60 per cent since January 2024, but silver’s relative undervaluation suggests stronger gains ahead. SPDR gold holdings rose 0.89 per cent to 1,005.72 tonnes on Friday. Physical gold demand in China weakened with discounts hitting multi-year lows, while Asian buying remained steady.
Uncertainty over a potential U.S. government shutdown if the debt bill isn’t passed before October 1st could boost safe-haven demand further. Rahul Kalantri, VP Commodities at Mehta Equities Ltd., noted that silver has support at $45.50-$45.70 with resistance at $46.45-$46.80.
Published on September 29, 2025
