The Silver price jumped above the USD 40 per troy ounce mark for the first time in 14 years at the beginning of the week, buoyed by the rise in the Gold price, Commerzbank's commodity analyst Carsten Fritsch notes.

Platinum and Palladium also gain ground

"The increase in the price of Silver exceeded that of Gold, as reflected in the decline in the Gold/Silver ratio to 85, the lowest level so far this year. For a long time, the price of Silver lagged behind the price of Gold, culminating in the Gold/Silver ratio rising to well over 100 in April. The reciprocal tariffs announced at that time by US President Trump fueled concerns about a global recession. Industrial applications account for almost 60% of Silver demand. The escalation of mutual tariffs between the US and China to prohibitively high levels in April was particularly detrimental. The subsequent suspension of most of these tariffs helped prices to recover."

"A few weeks ago, the US government extended the deadline for reaching an agreement with China by three months to mid-November. The previous significant undervaluation of Silver relative to Gold is likely to have attracted investors to the Silver market, which, based on forecasts by the Silver Institute and Metals Focus, is expected to be undersupplied for the fifth consecutive year. Silver ETFs tracked by Bloomberg have recorded inflows of nearly 2,100 tons since the end of May. As the price of Silver has significantly reduced its undervaluation relative to Gold and the Gold/Silver ratio is now only slightly above its long-term average, Silver's outperformance relative to Gold is likely to gradually come to an end."

"Prices for Platinum and Palladium also rose significantly at the beginning of the week. The trigger here was likely also the rise in Gold prices. There was no specific news regarding Platinum and Palladium. Platinum is trading at just over $1,400 per troy ounce, but remains below the 11-year high recorded in July. The Platinum price has recently moved largely in line with the Gold price, as can be seen from the stable Gold/Platinum ratio of around 2.5. At $1,130 per troy ounce, Palladium is far away from any highs. The price ratio of Gold to Palladium has risen to over 3 since the end of July. Palladium has thus underperformed Gold and Platinum in recent weeks."