The movement in financial markets remains volatile at the start of European trading on Friday (October 10, 2025), particularly in relation to Gold. This week, Gold has taken the spotlight as it easily surpassed the psychological level of US$4,000. Gold set a new all-time high at US$4,059 per troy ounce, and throughout this week, it has soared more than US$170, equivalent to 170 pips, leading up to that record.
However, it’s not just Gold that is gaining attention; the precious metal Silver has also made a significant jump. Silver skyrocketed to break its all-time record of US$51.424 per ounce yesterday. Throughout this week, Silver surged by US$3.461 (346 pips) to reach that record.
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The increase in Silver this year has even outpaced Gold; Silver has surged approximately 78% while Gold has risen 55%. Typically, the price movements of Silver tend to follow Gold, as both are precious metals. Nevertheless, other factors have contributed to Silver’s price rising more dramatically this year, particularly the demand from industries in three rapidly growing sectors: environmentally friendly technology, defense industry, and electronics. With such high demand for Silver, its price has surged accordingly.
Additionally, Gold prices have increased sharply over the past few years, while Silver has remained relatively stagnant. As a result, the Gold-to-Silver ratio (GSR) has widened.
Throughout the 20th century, the GSR averaged around 47:1, meaning it would take 47 ounces of Silver to purchase 1 ounce of Gold. However, entering the 21st century, this ratio has tended to move higher and stabilize within the range of 50:1 to 70:1. The highest GSR on record was noted in April 2020 when it reached 111:1 during global uncertainty caused by the COVID-19 pandemic.
As of April 2025, the GSR stood at 105, while it currently rests at 80. A ratio above 70:1 is generally seen as a signal that Silver is relatively undervalued. Consequently, Silver’s price appears to be “playing catch-up,” allowing it to climb higher than Gold this year.
Today, Silver has risen sharply once again, and there is a possibility that it may break its previous high. In tonight’s trading, the release of data from the United States could trigger significant movement again. Here’s some data from Trading Central:
- US Consumer Sentiment (Prelim/Oct) at 21:00 WIB: forecast 54 vs previous 55.1
GOLD
Gold prices (XAUUSD) have returned above US$4,000 per troy ounce at the start of European trading after previously dropping to US$3,947 per troy ounce. Gold faced profit-taking pressures following the Israel-Hamas ceasefire agreement.
The ceasefire has the potential to end geopolitical conflict in the Middle East, thus reducing one of the driving forces of Gold’s price increase. Nevertheless, the return of Gold above US$4,000 suggests that there is potential for further gains if the US consumer sentiment data from the University of Michigan is released lower than forecasted.
OIL
Oil prices (CLS10) have declined at the start of European trading, hitting a daily low of US$60.84 per barrel. The Israel-Hamas ceasefire also negatively influenced Oil prices.
With the ceasefire, the supply of Oil, particularly from Iran, is unlikely to be disrupted, suggesting potential increases in global supply, which could exert downward pressure on prices. This sentiment will likely continue to affect Oil movements during tonight’s trading.
EURUSD
EURUSD rebounded at the start of European trading, reaching a daily high of 1.15896. This currency pair had previously hit a low not seen in over two months after suffering a decline for four consecutive days.
EURUSD was negatively impacted by the resignation of French Prime Minister Sebastien Lecornu, which has led to a political crisis. However, this sharp decline triggered buying activity, as the dollar remains overshadowed by a potential government shutdown in the US.
Should US consumer sentiment data come in significantly lower than forecasted, EURUSD could receive a positive sentiment boost.
GBPUSD
GBPUSD has remained relatively stable at the start of European trading, ranging between 1.32789 and 1.33143. GBPUSD is also at a two-month low following a sharp drop last Thursday.
In tonight’s trading, GBPUSD could experience positive sentiment if US economic data is released worse than expected.
USDJPY
USDJPY declined at the start of European trading, hitting a daily low of 152.377. USDJPY faced profit-taking after surging over 550 pips in four days of trading this week.
Profit-taking could continue during tonight’s trading, particularly if US consumer sentiment data is released lower than forecasted.
NASDAQ
The Nasdaq has fluctuated in a narrow range between 25,251 and 25,353 up to the start of European trading. The Nasdaq is near its all-time high of 25,392 reached last Thursday. If US consumer sentiment data is released lower than forecast, it may signal a potential decrease in consumer spending, which could negatively impact the economy.
This situation is less favorable for stock market issuers, potentially putting additional pressure on the Nasdaq.
