Precious metal demand continues to surge

 

Record levels of client activity at ABC Bullion   

Precious metal demand has surged to record levels at ABC Bullion, in line with a global rally that has pushed gold toward USD $3,750/oz and silver above USD $45/oz. The metals have emerged as standout assets in 2025, with central banks, high-net-worth investors, and family offices rapidly increasing allocations. Even major investment firms like Morgan Stanley are now suggesting up to 20% portfolio exposure to gold. 

According to the Augmont Bullion, they noted for 23 September, “Precious Metals soar to a record high, but it's time to be cautious! Silver reached a 14-year high of $44.77 (~Rs 135,700) and gold reached a new record high of $3824.6 (~Rs 114,179) as traders reevaluated the Federal Reserve's stance in response to reasonable comments made by Chair Jerome Powell.”

Augmont analysed on 24 September that, “Precious Metals halt its upside rally! The surge in gold and silver has slowed as investors wait for the release of the US GDP data and the PCE price index report, which is the Fed's favourite inflation indicator.”  

“Furthermore, Fed officials are still split, with some predicting two more rate cuts this year, others favouring a more measured approach, and still others calling for more aggressive easing. Chair Jerome Powell also struck a cautious tone, highlighting the challenge of striking a balance between persistent inflation and a slowing labour market” Augmont adds. 

ABC Bullion said, Silver is also witnessing robust inflows, with investors attracted by its affordability and potential to outperform gold in the current bull cycle. However, analysts caution that after gains of over 35% for gold and 40% for silver year-to-date, a correction may be imminent—though considered a natural part of market cycles.  

ABC Bullion’s latest market review notes that long-term fundamentals for precious metals remain intact, despite short-term volatility risks. The firm highlights that while pullbacks are expected, inflation and weakening fiat currencies continue to make gold and silver attractive hedges for diversified portfolios.  

“All targets achieved in Gold at $3800 and Silver at Rs 135,000. Now it's time to book profits and stay cautious. This rally seems overbought and overdone. We can expect a price retracement anytime soon. Silver must break below $44 to show a correction, while Gold has maintained below $3780, indicating further profit-booking below $3700,” ABC Bullion analysed for 24 September 2025.