Precious Metals Market Update: Silver and Platinum Shine Amid Federal Reserve's Policy Shift
Market Overview
As of September 21, 2025, the precious metals market has exhibited notable movements, particularly in silver and platinum, following the U.S. Federal Reserve's recent monetary policy adjustments.
Price Action
| Metal | Price (USD) | Change |
|---|---|---|
| Gold | $3,660.34 | +0.5% |
| Silver | $42.35 | +1.3% |
| Platinum | $1,387.62 | +0.3% |
| Palladium | $1,166.15 | +1.4% |
Notably, silver has reached a 13-year high, and platinum has climbed to its highest level since early 2022. These gains are attributed to increased industrial demand and positive investor sentiment. Source
Macroeconomic Drivers
The Federal Reserve's recent 25 basis point interest rate cut and indications of a gradual easing path for the remainder of 2025 have significantly influenced the precious metals market. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like precious metals, making them more attractive to investors. Source
Technical Signals
- Silver: Holding above $35 per ounce is considered a critical inflection point, potentially reigniting retail interest.
- Platinum: The market is tightening, as indicated by elevated lease rates, suggesting potential for further price appreciation.
Investor Sentiment
Investor appetite for silver and platinum has been bolstered by strong physical demand in key markets such as India and China. Additionally, inflows into silver-backed exchange-traded funds (ETFs) have increased by 8% since early February, reflecting growing confidence in the metal's prospects. Source
Conclusion
The recent policy shift by the Federal Reserve has created a favorable environment for precious metals, with silver and platinum experiencing significant gains. Investors should monitor these developments closely, considering both macroeconomic indicators and technical signals when making investment decisions.
