Gold futures continued to extend the upward momentum in the first trading session of the week, recording the fourth increase session in the last five sessions as market sentiment improved and buying power returned to the high price range.
The most notable development appeared right in the first trading hour in the US. From 8 AM to 9 AM EDT, gold prices jumped up to 62.80 USD, equivalent to 1.34%, before hitting a daily peak at 4,758 USD/ounce and then cooling down towards the end of the session. The strong increase at the beginning of the session almost dominated the entire market fluctuation during the day.
Notably, the increase in gold took place even when Indian Prime Minister Narendra Modi called on people to limit gold purchases for the next year. As one of the world's largest gold consumers, such statements can usually put pressure on gold prices.
However, buying power from both domestic and international investors still well absorbed selling pressure, showing that demand for this precious metal is still maintained quite firmly.
Although gold continued to rise, silver was the real focus of the market in the first session of the week.
Silver futures jumped 5.97 USD, or 7.39%, to 86.80 USD/ounce – the highest level in two months and also one of the strongest increases for silver in recent times.
According to GoldSilver.com, the breakthrough momentum of silver came from a combination of two major factors.
First is information related to US-China trade. The market has information that the two largest economies in the world have reached a 90-day tariff truce agreement. Accordingly, the US is said to have reduced tariffs on Chinese goods from 145% to 30%, while China reduced tariffs on US goods from 125% to 10%.
If for gold, this information is assessed to have a relatively neutral impact, then for silver it has a clear positive meaning because this metal plays an important role in industrial production activities.
According to the Silver Institute, about 60% of global silver consumption demand comes from the industrial sector, including solar panels, electric vehicles and semiconductor – industries with supply chains closely linked to China.
As trade expectations improve, the market quickly readjusts silver demand prospects in the near future. The increase of more than 7% of silver in one session is seen as a direct response to that expectation.
Besides the commercial factor, the silver market is also supported by a prolonged supply shortage for many years.
The Silver Institute said the silver market has been short of supply for 6 consecutive years as consumption demand exceeds mining output. In 2026 alone, the expected shortage is about 46.3 million ounces, an increase of 15% compared to the previous year.
Since 2021, about 762 million ounces of silver have been withdrawn from ground inventory, causing market supply to shrink.
However, to date, major financial news agencies have not independently confirmed information about the US-China tariff truce agreement.
According to analysts, if the above information is confirmed, the short-term outlook for silver may continue to be strongly supported thanks to expectations of industrial demand recovery.
