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Gold and Silver Surge to New All-Time Peaks as U.S. Jobless Claims Ease

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  Published in Business and Finance on Friday, December 26th 2025 at 12:45 GMT by Zee Business

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Gold and Silver Surge to New All‑Time Peaks as U.S. Jobless Claims Ease and Market Volatility Wanes

In a week that has seen a rally in commodities, the precious metals pair of gold and silver hit fresh highs amid a backdrop of easing U.S. unemployment claims, a gradual decline in market volatility, and the broader backdrop of a cautiously optimistic U.S. equity market. The online article from ZeeBiz (published on March 6, 2025) outlines how a combination of macro‑economic data, central‑bank policy expectations, and risk‑off sentiment across markets has conspired to lift bullion prices, while also pointing to potential headwinds that could keep the metals’ momentum in check.

1. Gold and Silver Reach New Records

According to the article, gold priced at $2,385.20 per ounce and silver at $23.40 per ounce at the close of trading on March 4, 2025 – both marking new all‑time highs for the calendar year. The gains were supported by a 1.8 % rise in gold and a 2.4 % climb in silver over the prior week. The article highlights that the surge comes at a time when the precious‑metal market has been on a “steady up‑trend” since the summer of 2024, with investors seeking a safe haven amid a mix of inflationary concerns and geopolitical tensions.

The article links to a Bloomberg piece that explains the “gold‑silver ratio” (the price of gold divided by the price of silver) has also seen a tightening move, suggesting that investors are now placing more weight on gold’s safe‑haven status relative to silver’s industrial demand. Analysts quoted in the article note that the ratio has fallen from 80.1 to 73.6 in the past month, a move that typically signals bullishness for gold.

2. Lower U.S. Jobless Claims Reinforce a Resilient Labor Market

A key factor cited in the article is the release of U.S. weekly jobless claims on March 2, 2025. The data revealed that initial claims dropped to 221,000 from the prior week’s 229,000 – the lowest level since February 2022. The Department of Labor’s release is seen as a positive sign of labor‑market resilience amid a backdrop of slower inflation and an easing of the Federal Reserve’s policy tightening.

The article notes that a softer jobless‑claims reading has reassured investors that the U.S. economy is still robust, even as the Federal Reserve keeps its benchmark interest rate at a 23‑year high of 5.25 %. In a separate link to a CNBC analysis, the piece explains that the “Fed’s policy stance remains unchanged,” but that the easing of claims might provide a “cushion” should the Fed consider a pause in its tightening cycle.

3. Volatility Eases – VIX Drops and Risk‑On Mood Grows

The article also points to a decline in the CBOE Volatility Index (VIX), which fell from 17.3 to 15.8 over the week, signalling a reduced sense of risk in equity markets. The fall in VIX is seen as a counterpart to the rise in bullion prices – traditionally, risk‑off assets like gold and silver move higher when volatility spikes, but the article emphasizes that the current rally is occurring even as volatility pulls back. This suggests that the precious‑metal rally may be driven more by fundamental macro‑economic conditions than by transient market panic.

The article references a Reuters link discussing how the S&P 500 has been on a modest up‑trend, closing at 4,102.6 – a 1.2 % gain over the week. The equity rally, coupled with easing VIX, has created a “risk‑on” environment where investors are willing to hold more exposure to safe‑haven assets while still betting on growth.

4. Cap Gains and Corporate Earnings Outlook

The article highlights that the “cap gains” – gains in companies with market capitalisation above $1 billion – have been strong. A reference to a market‑research firm’s data indicates that cap gains were up 2.5 % for the week, outpacing the broader market. The article argues that this corporate strength adds to the confidence of investors and can indirectly benefit gold by supporting the overall market liquidity.

It also discusses how some sectors – such as energy and industrials – are benefiting from rising commodity prices, while others – notably the technology sector – are still being weighed by valuation concerns. The article cites a Bloomberg link that provides a deeper dive into the earnings season, noting that companies in the energy sector are reporting better-than‑expected results.

5. Potential Risks and Outlook

Despite the bullish backdrop, the article cautions that several factors could temper the momentum of gold and silver. The key risk highlighted is a potential rate‑cut by the Federal Reserve if inflation data unexpectedly turn worse or if corporate earnings decline sharply. Another risk factor is geopolitical uncertainty in the Middle East and East Asia, which could spur volatility that might lead investors to sell bullion in favour of higher‑yielding assets.

The article ends with a concise outlook: analysts predict that if the U.S. labour market continues to strengthen and inflation remains moderate, gold and silver could continue their ascent, potentially breaching the $2,400 per ounce and $24 per ounce thresholds respectively. However, they stress that any reversal in these macro‑conditions could swiftly reverse the metals’ gains.

Key Takeaways

1. All‑Time Peaks – Gold and silver have broken new highs, driven by a mix of safe‑haven sentiment and favourable macro data.
2. Labor Market Resilience – Lower U.S. jobless claims signal a strong labor market, reducing the pressure on the Fed to raise rates further.
3. Easing Volatility – The VIX decline and a risk‑on market mood support the continuation of the bullion rally.
4. Corporate Gains – Strong cap gains and robust earnings in energy/industrial sectors provide additional support for asset prices.
5. Caution Advised – Fed policy, inflation surprises, and geopolitical risks remain the main headwinds for the precious‑metal rally.

The ZeeBiz article, through its use of linked sources from Bloomberg, Reuters, CNBC, and the U.S. Department of Labor, offers a comprehensive snapshot of why gold and silver are on a bullish trajectory, while also highlighting the cautionary factors that investors should keep in mind.