Summa Silver Corp. (TSXV: SSVR, OTC: SSVRF, FRA: 48X)
Silver Lives Here
Due to reports about trade tensions between China and the United States have eased somewhat, and US President Trump hinted earlier that several trade agreements are in the works. Gold prices fell on Friday as risk aversion eased somewhat. Spot gold closed at $3,284 per ounce before the end of the week, having fallen by more than 1% for the week. Compared with the historical high of over $3,500 per ounce reached during Tuesday’s trading session, the gold price has pulled back by 6%.
Yuxuan Tang, a strategist at JPMorgan Private Bank, said that news that retaliatory tariffs might be partially exempted further boosted market sentiment today, pushing gold prices below $3,300. However, since 2022, the decline in gold prices has usually been quickly replaced by a rebound.
Still, gold remains one of the best-performing assets of 2025, having risen by 25% since the beginning of the year.
Daniel Ghali, a commodities strategist at TD Securities, believes that the easing of tariff policies has put pressure on gold prices, but there are still funds that have continued to buy on dips in the past few trading days. Therefore, gold prices may resume their upward trajectory soon.
Earlier this week, analysts at JPMorgan said they expected the gold price to reach $4,000 per ounce next year. The bank predicts that before reaching this milestone, the average price of gold will reach $3,675 per ounce in 2025.
Kelvin Wong, a senior market analyst at OANDA, also believes that the rally in gold has not ended. If China and US trade negotiations fail to achieve a breakthrough and the United States introduces more tariffs, the uncertainty of US business planning and the risk of stagflation will increase. This, in turn, will weaken the US dollar and further push up the value of gold.
Lukman Otunuga, a senior market analyst at FXTM, described the current trend of gold prices as a new round of profit-taking. He added that the fundamental factors supporting gold prices are still intact.
He pointed out that there will be a large amount of important US data and corporate financial reports in the coming week, which may affect the overall sentiment. The latest US gross domestic product (GDP), the inflation indicator favored by the Federal Reserve, and the US employment report may influence the Federal Reserve’s decision to cut interest rates, thereby affecting the gold price.
From a technical perspective, a gold price drop below $3,250 may drag prices towards $3,170. If $3,250 proves to be a reliable support, the price may rebound to $3,390 and $3,500.
Philip Strieble, chief market strategist at Blue Line Futures, said that if the uncertainty in financial markets peaks, the performance of silver is expected to start outperforming that of gold. He believes that if industrial demand can gain a firm foothold, then investors should witness a recovery in silver demand.
This week, the soaring gold price once pushed the gold-silver ratio to a multi-year high of 107. However, the selling of gold in the latter half of the week has lowered the ratio to around 99.
