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Softer US jobs data and Middle East tension have lifted both metals since early August.
Gold and silver have broken through key technical levels in the past 10 days, in one of the strongest short-term runs either metal has had this year.
Gold has risen about 7 to 8.5 per cent since the start of August, climbing from around US$4,050 an ounce to between US$4,340 and US$4,400.
Silver has done better, adding 11 to 14 per cent from the mid-US$57 area to trade between US$64 and US$66. That has compressed the gold-silver ratio, a sign that appetite for the more volatile metal is returning.
Gold has moved above its 50-day moving average and is holding above the 200-day exponential moving average, which many chartists read as confirmation that the short-term trend has turned higher.
It also broke out of a multi-week consolidation pattern and posted one of its strongest weekly gains since January.
Silver’s chart is stronger again. The metal cleared its 50-day moving average near US$61 to US$62 and confirmed a bullish inverted head-and-shoulders pattern with a measured target near US$67.
It has also reclaimed recent swing highs, putting the 200-day moving average and higher resistance zones back in play. Silver’s higher beta means sustained momentum could produce outsized gains against gold.
The trigger was a weaker than expected US non-farm payrolls report, which showed employment contracting and prompted markets to scale back expectations of further Federal Reserve tightening.
Lower rate expectations reduce the opportunity cost of holding assets that pay no yield. Tension in the Middle East, particularly around the Strait of Hormuz, has added safe-haven support.
Market commentators describe the breakout as constructive rather than speculative.
Silver draws on both investment demand and industrial consumption tied to electrification, solar power and technology infrastructure. Gold has central bank buying behind it, and its long-standing role as a monetary hedge.
Caution is still warranted. Both metals sit well below their early-2026 peaks, and this advance is a recovery inside a larger corrective phase rather than a confirmed return to the previous bull market.
For now the balance of risk has shifted. If gold holds above the 200-day average and silver sustains its break above the 50-day moving average, the near-term path of least resistance points higher.
US inflation data is the next test, and a hotter reading than expected could quickly challenge the levels just established.
This article is sponsored content supplied by Commonwealth Vault. It is general information only and is not financial advice. Prices quoted are as at the date of publication. Seek independent advice before making an investment decision.
