AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

10/9/2025: Silver breaks $50 before profit taking correction

Source: Dana Samuelson, American Gold Exchange

Austin — After trading between $48.70 and $49.50 overnight, the silver spot price broke sharply higher in early New York trading to as high as $51.22, before a profit taking correction ensued engulfing all four precious metals. After ripping higher in seven of the last ten trading sessions, gold, silver, platinum and palladium were all ripe for a profit-taking pause and today was the day. At the New York close gold was down 2%, silver gained 0.5%, platinum fell 2.5% and palladium tumbled 1.5%.

Multiple forces led to today’s precious metals sell-off.

Silver went into a complete market dislocation in London this morning creating a full-on silver squeeze. The $1.75 surge in New York to new all-time highs for silver broke the increasingly dislocated London Over the Counter market for physical delivery.

First, the London Over the Counter market premium for physical silver above the New York December Comex price surged from 40 cents yesterday to $1.80 this morning. At the same time the overnight lease rate blew out from 25% yesterday to 100% today. These extreme changes in premium and financing costs, at levels several trading partners said they had never seen before in their careers, were characteristic of a complete lack of liquidity or a temporary breakdown in the London OTC market.

We described this as a lack of silver for immediate delivery in yesterday's update and today it reached critical mass when silver surged sharply in New York, breaking the ability of traders to hold existing positions, which led to a sharp silver market sell-off. Silver fell $3.07 from peak to trough, before recovering and closing modestly higher at the close of the New York session. Silver continued to gain modestly in the electronic session. Gold, platinum and palladium clawed back about one quarter of their New York session losses in after- hours electronic trading.

The dollar, which has been edging higher all week, gained 0.5% on the US dollar index, to 94.41, a level not seen since August. With no US economic news released by the US government due to the ongoing shutdown, no news was good news. Meanwhile the Euro and the Yen weakened against the dollar due to uncertainty over French politics and fears of new yen unfriendly policies in Japan from Japan's likely next premier Sanae Takaichi.

Finally, news of a peace deal between Israel and Hamas in Gaza removed a little steam from their ongoing conflict, easing international tensions a bit.

At the New York spot close: gold tumbled $80.45 to $3,962.85; silver gained $0.19 higher to $48.84; platinum fell $43.90 to $1,634.10; and palladium shed $20.96 to $1,433.25.