(Kitco News) – China and India are seeing strong gold imports even as prices set new highs, while depleting silver stocks are fueling the price rally, and platinum’s tight supply will likely support further price gains, according to precious metals analysts at Heraeus.
In their latest precious metals update, the analysts wrote that China and India are continuing to import gold despite record-high prices.
“In August, imports of non-monetary gold were over 100 tonnes and only slightly lower than in July,” they noted. “The latest customs data shows that imports from Switzerland jumped from 9.9 tonnes in July to 35.0 tonnes in August, which had a value of more than $3 billion. Exports from Switzerland to India have also been strong, rising from 13.5 tonnes in July to 15.2 tonnes in August. Jewellery fabricators are likely to be stocking up ahead of the festival and wedding season, with Diwali occurring in October.”
Investors are also continuing to pile into gold, with COMEX non-commercial net gold futures rising to 26.6 moz. “That is the highest level since February, but still well below the 31.5 moz from September 2024,” the analysts wrote. “ETF holdings also continue to climb and have reached 96.1 moz, but this is below the all-time high of 111 moz from October 2020.”
And after a brief two-day pullback following the Fed’s 25 basis point rate cut, the gold price rallied to new all-time highs once again.
“Fed fund futures have priced in four cuts by July next year, whereas the Fed’s committee members are projecting three more cuts by the end of 2026,” they said. “Either way, further rate cuts seem likely and if inflation is sticky then real interest rates will fall which is good for gold.”
Spot gold set a new all-time high of $3,831.45 just before 8 am EDT, and it was approaching that level shortly after the North American open.
Spot gold last traded at $3,827.71 per ounce for a gain of 1.80% on the session.
Turning to silver, Heraeus said dwindling silver stocks are contributing to the gray metal’s rally.
“Silver futures prices surpassed $46 last week, reaching a near 14-year high, supported by the Fed’s decision to cut rates by 25 bp in the previous week and strong industrial demand, which has contributed to a drawdown of available above-ground stocks,” the analysts wrote. “LBMA silver inventories have been depleting rapidly, down 7.5% year-on-year to 792 moz in August 2025, reaching multi-year lows as substantial volumes of metal have moved into COMEX warehouses amid the threat of tariffs. While COMEX stocks remain significant at over 500 moz, only a fraction is registered stock – i.e. metal that is available for delivery – currently at 193 moz, or 36% of total inventories, which limits the freely available pool of metal.”
Silver ETF holdings also rose by 10 million ounces last week to reach 820 million ounces. “This is well below the highest level of 1,021 moz from February 2021, indicating investors are not yet as engaged with the current rally,” they said.
Silver prices are also seeing a strong start to the week, with spot silver last trading at $46.691 per ounce for a gain of 1.39% on the daily chart.
And the market for platinum, another standout performer in the metals complex, remains tight.
“The price has exceeded $1,500/oz, taking it to a new high for the year and above the 2014 high ($1,519/oz),” the analysts noted. “Lease rates are still elevated, but not at the extreme levels seen when the price peaked at a slightly lower level in July, indicating tightness in the market.”
“While South African platinum production may be back to normal levels, that has not yet done enough to ease the situation, although over time higher exports from South Africa should improve market liquidity,” they added. “In the short term, the price rally has strong momentum and the price could push higher.”
Spot platinum prices are indeed pushing higher on Monday, last trading at $1,593.40 per ounce for a gain of 1.29% on the session.
