Recently, in the Monthly Market Update for May 2025 by Jordan Eliseo, General Manager & Luke Tyler, Analyst of ABC Bullion focussed on the Precious Metals Performance. The Report said, gold prices consolidated throughout May, following one of the strongest Q1 performance for the precious metal on record.
Across the course of the month, gold posted a marginal 0.74% loss in USD terms, reaching a monthly low near USD $3120 per troy ounce (oz) before recovering to USD $3289oz by month end. Australian dollar investors experienced comparable losses, with gold falling by 1%, with the Australian dollar largely unchanged over the month, ending May at USD 0.6436.
The fundamental backdrop for gold remains strong, with persistent central bank demand, anticipated interest rate cuts and mounting debt and deficit concerns providing continued support. Additionally, rising recession risks driven by continued global tariff and geopolitical tensions, sticky inflation and weakening consumer confidence reinforces the metals appeal as a safe-haven asset and a hedge against monetary instability.
Silver experienced marginal gains over May, rising by 2.65% and 2.33% in USD and AUD terms, respectively. The precious metal hit a monthly low of USD $31.65 per troy ounce (oz), before finishing May at USD $32.98oz. The metal continues to be driven by a combination of robust industrial demand, an ongoing structural supply deficit and sticky inflationary pressures.
The gold to silver ratio (GSR) continues to remain elevated relative to its long-term historical median, ending May at 99:1. Historically, the ratio has ranged from as low as 20:1 to as high as 115:1, with a median of 62:1 since 1969. This indicates silver remains undervalued and suggests it may strongly outperform gold in the
period ahead, particularly given historical observation that shows silver doing exactly this in precious metal bull markets.
Platinum prices saw a large spike over May, with gains of more than 10% in USD terms as investors priced out of the gold market search for an alternative. The rise was largely fueled by a structural undersupply and a resurgence of Chinese demand particularly across jewelry and industrial applications, with the nation importing 11.5 tonnes in April alone.
Gold delivered exceptional gains in 2024, with returns ranging from as “low” as 26.6% in USD terms, to over 40% in YEN. This performance has carried over into 2025 so far, with YTD returns that exceed full year calendar returns in some of the more modest periods for gold price performance. Gold returns in developing
market currencies have marginally outperformed those in developing markets in 2025 YTD, averaging 21.4% and 21.3% respectively.
Silver delivered exceptional gains in 2024, with returns ranging from as “low” as 21% in USD terms, to almost 35% in YEN. The silver market has continued to generate strong returns in 2025 YTD across multiple currencies (despite the April pullback) with gains of 10.8% across developed markets and 10.7% in developing markets on average.
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