Gold and silver may last a while longer in peace!

Metals markets consolidate for most of May after record surge 

In the market report, ABC Bullion said, precious metal markets were in consolidation mode for most of May, with gold ending the month largely unchanged, after trading in a range between USD $3,400 and USD $3,100 per troy ounce (oz). Silver was likewise steady over May as a whole, last trading just above USD $33oz, while in local currency terms it looks like ending the month just above AUD $52oz. 

The sideways trade seen across the month represents a much-needed period of calm for both gold and silver, with both metals seeing one of their strongest starts to the year on record between January and late April for gold, with silver peaking earlier. 

The surge in metal prices in early 2025 was driven by multiple factors, including renewed volatility in risk assets both leading into and in the aftermath of the Trump administration's liberation day, tariff announcements, and the return to monetary easing by the US Federal Reserve.

While this period of calm for gold and silver may last a while longer, the outlook for precious metals remains positive, which can be seen through; The recent decline in the gold to silver ratio, which surged toward 104 in early May but has ended the month closer to 100.  

Price action in PGMs, most notably Platinum, which is up close to 15% in the past few weeks, having broken out of what appears to be a decade long base, with the price now back above USD $1,000oz.  

The Platinum market in particular is generating more interest at present, with the market seeing supply deficits that have been in place for years and are set to remain in place until the end of the decade, as well as strong industrial and rising investment demand (see chart below). The recent relative strength in platinum and silver, as well as the macroeconomic and monetary drivers for precious metals suggest there is still substantial upside in this market, with corrective periods like the one we are in now being used as buying opportunities by investors worldwide, including clients at ABC Bullion.  

Colin Shah, MD, Kama Jewelry detailed Gold-Silver Weekly Performance & Outlook; “The performance of bullion was volatile during this week owing to continuous fluctuations in prices. In case of gold prices in the international markets, there was a significant uptick during the week, rising approximately 3% to reach USD 3,303.92/Oz as of early Friday- May 31. This can be attributed to weakening dollar which saw depreciation of over 1% this week, followed by growing investor concerns regarding the fiscal outlook of the US.  

Domestically, gold price surpassed INR 96,000/10gms and remain range-bound between INR 93,000/10 gm to INR 96,000/10gms during the week. This was owing to the ripple effects of the international factors at play that fueled gold prices in the domestic market.  

Silver, on the other hand, saw 0.1% increase with prices hovering at USD 33.12/Oz in international market. Domestically, silver prices stood at INR 98,000/kg. This can be attributed to the cautious investor sentiments followed by global commodity trends and price movements.  

Moving forward to next week, the outlook for gold remains bullish with a possibility for a potential short-term correction. International Prices are expected to trade in the range of USD 3300-3400/Oz, supported by ongoing geopolitical tensions and uncertain outlook over US fiscal policies signaling economic instability in the biggest economy of the world. Domestic Prices can hover in the range of INR 95,000-96,000/10 gms. For silver, prices may remain relatively stable, unless any major economic development takes precedence.”