As of: 2025-09-05 by Florian Grummes
As expected, the gold market saw a showdown in the last two weeks. Starting from a final summer low of US$3,311 on August 20, gold prices have only moved upwards recently.
Especially, the central bankers’ meeting in Jackson Hole provided the initial spark. Subsequently, gold prices were able to easily overcome the multi-month resistance zone of US$3,400 to US$3,450 and quickly rise to a new all-time high of US$3,578. Only in the last two days has the gold market taken a breather just below the new record.
In parallel, the silver price also gained significantly. Starting from the summer low of US$36.96, silver gained 12.2% in just two weeks and is now trading clearly above US$40 for the first time since autumn 2011!
Shortly before the release of US labor market figures, precious metals look very strong, but after the sharp price increases, they are also overbought and thus susceptible to consolidation or temporary pullbacks. However, the clear breakout of the gold price from its four-month consolidation triangle clearly suggests a continuation of the rally in the coming weeks. The situation is similar for silver. With the rise above the psychological resistance around US$40, the path towards the all-time highs of US$50 is essentially clear.
The silver market has undergone a profound transformation in recent years. Historically, silver was primarily characterized by its use in coins and photography. Today, however, industrial demand forms the core of the market. This shift is driven primarily by technologies and the global energy transition – a structural change that positions silver in a completely new economic context.
Silver Demand, Projected Shifts in global demand, as of September 1, 2025. Source: Mining Visuals
The data from the Silver Survey 2025 illustrate this development: With 270 million ounces, the electronics and electrical engineering sector remains the largest consumer, establishing silver as an indispensable raw material in devices, vehicles, and digital infrastructure. With an increase of +140% compared to 2016, demand is growing particularly dynamically in the photovoltaic sector and reached approximately 196 million ounces in 2025. Other industrial applications also show stable growth of almost 20%, which underscores silver’s versatility and growing importance in high-tech industries.
In contrast, traditional uses continue to lose significance. Photography is shrinking by over 30% and thus almost entirely receding into a niche. Demand for silver coins and silver bars, however, has slightly decreased over the past nine years.
Overall, the silver market is no longer defined by the contrast between traditional and modern applications. Rather, silver has established itself as an indispensable industrial key raw material in the fields of electrification, connectivity, and green energy – a market clearly marked by the “Industrialization of Silver“.
Additional momentum could come from a renewed increase in investment demand in the coming months and years. While Western central banks have relied almost exclusively on gold as a reserve for decades, the Saudi central bank, for example, recently caused a stir with its first-time purchase of silver and silver mining ETFs. Even though the volume of around US$40 million is small, this step could be a signal and initiate a paradigm shift in the use of silver as an investment and currency reserve.
Silver in US Dollars – Daily Chart
Since the silver price briefly crashed to US$28.31 at the end of March due to the panic in the stock markets at that time, the bulls have firmly taken control of the silver market. Not only were the losses quickly recovered, but shaking out the weak hands evidently also gave silver enough strength to break above the resistance levels at US$35, US$37.50, and US$40.
Silver in US Dollars, Daily Chart as of September 5, 2025. Source: Tradingview
Despite interim consolidations and short-lived setbacks, silver prices are remarkably steadily and patiently pushing higher. The typical impulsive and flagpole-like overshooting is not yet apparent, which makes the price increases and thus the ongoing rally appear all the more sustainable.
On the daily chart, however, the silver price reached the resistance band again on Wednesday with a high of US$41.47, which had temporarily halted the uptrend in June and July. In this respect, a pullback to the area of approximately just under US$40 would be quite possible in the coming days.
If the bulls, however, manage to break out of the rising wedge directly or shortly, an acceleration of the rally and thus price targets around US$50 would be conceivable as early as September or by mid-October. Otherwise, the whole thing will drag on, and silver will continue to move upwards within the wedge. In any case, the technically overbought daily stochastic has moved into an “embedded and thus super bullish” state.
The setup in the gold market looks similar. This cements the uptrend, and the acceleration scenario has a significantly increased probability!
Silver – from Summer Slump to Soaring Heights
In the last two weeks, the gold price broke out upwards as expected. Starting from a summer low of US$3,311, gold prices rose very sharply in the last two weeks, reaching a new all-time high of US$3,578.
After this steep rise, the market deservedly took a short breather in the last two days, just below this record high. Pullbacks to below US$3,500 must be factored in. The worst-case scenario would be a test of the breakout zone between US$3,450 and US$3,400.
Given the bullish starting position and the firmly established uptrend on the daily chart, the opportunities are clearly on the upside. The next price targets for gold are approximately US$3,750 and US$4,000 and could be reached soon.
In parallel, the silver price also gained significantly. Starting from the summer low of US$36.96, silver rose by 12.2% within two weeks and surpassed the US$40 mark for the first time since autumn 2011. Despite the overbought situation, any pullbacks are likely to be very short-lived.
The potential for further price increases in the coming weeks, with price targets of approximately US$45 and at best US$50, is definitely present.
