Silver Retreats from Record High on Profit-Taking; Gold Touches Seven-Week Peak

Silver prices dropped sharply on Friday after touching a record high earlier in the session, as investors moved to book profits. Spot silver fell nearly 3% to around $61.7 per ounce after hitting an all-time peak of $64.64. Despite the pullback, silver remains strongly positioned, posting nearly a 5% weekly gain and more than doubling in value so far this year, driven by tight inventories, robust industrial demand, and its addition to the U.S. critical minerals list.

Gold, meanwhile, extended its upward momentum, rising to a seven-week high as the U.S. dollar stabilised after recent declines. Spot gold edged up 0.3% to about $4,293 per ounce, while U.S. gold futures settled 0.4% higher. Analysts noted that a combination of profit-taking in silver and a modest uptick in the dollar contributed to the divergence between the two precious metals.

Market focus now shifts to U.S. economic data, particularly the non-farm payrolls report due next week, which could influence interest rate expectations. The Federal Reserve recently delivered its third rate cut of the year but signalled caution on further easing. In the broader metals market, platinum surged 2.6% to a 14-year high, while palladium also posted gains, both on track for weekly advances.

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