Debasement Trade Accelerates: Precious Metals Extend Historic Rally

The bull run in precious metals accelerated again this week. Gold pushed to new heights, briefly touching ~$3,790/oz on strong momentum, while Silver decisively pierced $44/oz, and Platinum printed near $1,500/oz. These gains reflect more than a single catalyst it’s the cumulation of systemic risk, repositioning of capital, and shifting narratives. 

On the macro front, weak U.S. payroll data reinforced expectations of imminent Fed easing, and bond markets continued to digest stress in sovereign debt, especially in Europe. The arbitrage between rising long-term yields and a pivot toward fiscally dominated policy orientation has tilted flows toward real assets. The rally also benefits from the “shrinking pool of havens” as yields rise and safe bonds become scarcer, gold increasingly steals capital flows from fixed income. 

In the political realm, heightened risk from domestic instability (e.g. the Charlie Kirk event) is feeding into volatility premia. Investors are revisiting gold not merely as inflation hedges, but as protection against systemic stress. 

Silver’s breakout is particularly notable. Beyond being gold’s “little sibling,” it doubles as an industrial metal. Its reclassification among critical minerals and regional stockpiling for industrial demand has added fresh momentum. Meanwhile, Platinum’s surge reflects renewed institutional interest, supply deficits (e.g. mine shutdowns), and catch-up component after lagging earlier. 

Yet the run is not without signs of caution Powell’s comments triggered a sharp intra-week pullback, reminding markets that gold’s ascent is fragile in the face of any tightening surprise. Still, with positioning broadly underweight and fundamental support deepening, the prevailing run appears to have room to extend.