The Global Precious Metals MMI Index surged by 14.44% in October, as all four major precious metals posted strong gains early in the month.
Gold once again set new record highs, silver briefly hit $54 per ounce before a sharp pullback, and both platinum and palladium approached multi-year highs.
The rally was driven by a combination of factors including the ongoing US government shutdown, renewed tariff concerns, and labor-market weakness — all of which spurred hedging demand for safe-haven assets.
What’s Driving Palladium’s Recent Rally — and Where Is It Headed?
According to Capital.com, palladium prices have jumped around 26% since early October, reaching about $1,500 per ounce, rising alongside platinum and amid looser global financial conditions.
Expectations of US interest-rate cuts and a weaker dollar also supported palladium as part of the “Gold + Liquidity” wave lifting precious metals broadly.
Because palladium is used almost exclusively in catalytic converters for gasoline engines, automakers and electronics producers in the US could face cost volatility.
Technical analysis from Monex identifies resistance between $1,500 and $1,520 per ounce, with forecasts calling for a generally bullish but volatile trading pattern.
Analysts at CPM Group said palladium’s strength is closely tied to platinum’s performance, though they warned that US labor-market weakness and persistent inflation could cap demand growth.
Platinum Nearing Its Highest Levels in Years
Platinum has been the top performer among precious metals in 2025, rising roughly 30% year-to-date to levels not seen since 2008, according to Monex.
Demand drivers include catalytic converters and fuel-cell technology, especially as usage expands in hybrid and heavy vehicles. Stricter emissions standards are also helping sustain automotive demand.
Mining supply remains limited, and analysts expect the platinum market to post its third consecutive annual deficit in 2025.
CPM said platinum recently reached its highest level since 2012 and could climb to between $1,750 and $1,850 per ounce in the coming months, though it cautioned that pullbacks and sideways movements are normal even in bull markets.
For US buyers, the firm recommends maintaining a cautiously optimistic outlook and implementing hedges gradually.
Why Did Silver Spike and Then Drop?
Silver climbed sharply to around $54 per ounce in mid-October, driven by safe-haven demand and strong industrial usage, before dropping about 6% to $51.9 per ounce on October 17 — its biggest one-day decline in months, according to the Economic Times.
The fall was linked to easing credit-market fears and calmer trade tensions, which reduced defensive buying, while a stronger US dollar and higher bond yields weakened momentum.
Despite the pullback, silver’s fundamentals remain strong: it’s up more than 70% year-to-date, supported by robust industrial demand from electronics, data-center, and energy sectors amid tight global supply.
The US recently added silver to its list of critical minerals, a move expected to encourage stockpiling and investment. Analysts expect silver to resume its upward trend once market volatility returns.
What Fueled Gold’s 2025 Surge?
Gold broke above the $4,000-per-ounce threshold on October 8, rising about 60% since January. Many US buyers now see the sharp rally as a major cost driver for hedging and metals budgets.
Like other precious metals, gold’s rise has been supported by traditional safe-haven factors and bullish Wall Street sentiment.
Even HSBC recently raised its year-end gold forecast, and most analysts expect the metal to stay supported unless an unexpected rebound in the US economy reduces demand for protection.
Experts describe the current stage as a late-cycle bull market — with potential corrections ahead, but no clear signs of collapse.
Lisa Shalett, Chief Investment Officer at Morgan Stanley, said, “Gold’s rally this year is unusual because both gold and equities are moving higher together.”
Key MMI Index Moves:
Palladium bullion rose 11.91% to $1,231 per ounce.
Platinum bullion gained 16.75% to $1,568 per ounce.
Silver bullion jumped 20.86% to $46.99 per ounce.
Gold increased 13.14% to $40.54 per ounce.
