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Key Facts

Gold futures hit their highest level since about mid-May on Friday, rising about 2% to reach a price of $4,661.70.

Silver rose a similar amount, inching up about 2% to hit a price of $70.08, marking the first time the precious metal has crossed the $70 threshold since about mid-June.

Both metals are ending this week about 5% higher, marking a price rally that follows a mostly stagnant summer in which their prices did not budge much.

Ole S. Hansen, an analyst at Saxo Bank, posted on X Friday a softer dollar is one of the key drivers of commodity prices rising, as the dollar index is down very slightly Friday morning—about 0.02%—but is hovering around a three-month low.

UBS Group AG chief strategist Bhanu Baweja also told Bloomberg the rise in metals prices is partially because of the Treasury Department’s announcement it would double buybacks of 10-to-30 year securities, calling the move “a very important signal for gold.”

How Are Gold And Silver Prices Faring This Summer?

Gold and silver have largely come down from the historic highs they reached earlier this year, as gold languished between roughly $4,000 and $4,200 and silver hovered between $50 and $60 for much of the summer. For the quarter ending June 30, gold shed 16% of its value, representing its worst quarter in more than a decade. Around that time, gold and silver had fallen to seven-month lows, erasing some of the gains the metals made during a historic price rally that ended in January of this year. Analysts blamed the summer slump on factors including a then-stronger dollar and expectations that the Federal Reserve may raise interest rates at some point this year. Gold and silver have started to surge again in August, though, as gold recorded its best week in seven months earlier this month.

Will The Federal Reserve Raise Interest Rates This Year?

It’s possible the Fed could raise interest rates later this year, a move that typically depresses gold and silver prices. CME Group’s FedWatch tool says the probability of a rate hike at the Fed’s December meeting is about 70.9%, much higher than the likelihood of a rate increase at the central bank’s September or October meetings.

key background

Gold and silver rose to historic highs earlier this year, with gold topping off around $5,600 and silver reaching about $121 in late January. Prices were buoyed by factors including international tensions, President Donald Trump’s tariffs, interest rate cuts and increasing demand for metals from technological sectors. Prices fell in January after Trump named Kevin Warsh as his choice to lead the Federal Reserve, as Warsh was viewed as less likely to cut rates. Metals prices largely declined throughout the Iran war, as metals generally traded inversely with oil prices, which spiked.

further reading

Gold Price Hits Two-Month High After Mostly Stagnant Summer (Forbes)