Silver Trading Over $80 as Miners Hedge, High Gold Price Hits India's Consumers

SILVER TRADING ended Friday with the highest London benchmark price in 8 weeks as gold bullion also slipped from yesterday's spike but showed strong weekly gains while oil prices softened and long-term borrowing costs fell in the bond market on hopes for "serious" peace talks between the US and Iran.

"We're expecting a response from them," said Washington's Secretary of State Marco Rubio of the proposals despite US forces attacking Iranian ships overnight near the blockaded Strait of Hormuz.

Global oil benchmark Brent crude lost 6.5% for the week to trade back at $101 per barrel, while 10-year US Treasury yields slipped 4 basis points from last Friday's 5-weekend high of 4.39% per annum even after today's non-farm payrolls data showed surprise strength in April's US jobs growth.

Priced in Dollars, gold made its highest Friday finish in London bullion trading for 3 weeks and silver recorded its first Friday midday auction price above $80 per Troy ounce since mid-March.

With precious metals prices trading sharply higher last year, "2025 saw a marked split between gold and silver hedging activity" among mining producers, says the latest weekly note from specialist analysts Metals Focus.

"For gold, net de-hedging continued at pace" as prices hit new record highs, "to reach its lowest volume since Q2 2014. [But] for silver, activity returned" − led by base metal miners, for whom silver is a byproduct − "with the outstanding hedge book surging by year-end."

"Higher gold prices are severely affecting purchases," Reuters today quotes a jeweller in Hyderabad, southern India, where wholesale quotes this week showed a $15 per ounce discount to official import costs.

"Retail demand is not picking up even though the wedding season is underway."

With global non-investment gold demand collapsing this New Year according to Metals Focus data for the mining industry's World Gold Council, imports to No.2 consumer India likely hit a 3-decade low last month as the Trade Ministry delayed approving new inflows and customs officials blocked release of newly arrived gold by raising questions about tax payments.

Gold in No.1 consumer nation China, in contrast, rose to a near-$25 per ounce premium this week from $19 last, showing that "people still want to buy some gold for investment and safe-haven, as they are still concerned about the uncertainty in the Middle East and also ⁠inflation," according to Hong Kong dealers Wing Fung Precious Metals.

China's CSI300 stock index slipped Friday but made a 1.3% gain for its shortened week returning from the May Day holidays.

Western stock markets meantime headed for their 9th new week-end record in 19 weeks of 2026 so far on the MSCI World Index.

Bond prices also rose across Western markets, led by UK Gilts − which knocked almost 1/10th of a percentage point off London's 10-year borrowing costs − after Prime Minister Keir Starmer vowed to stay in post despite his ruling Labour Party losing control of devolved power in Scotland and Wales while coming 4th in England's local council elections.

Priced in Dollars, gold in London rose 2.3% for the week, making the same gain in Euro terms at €4029 and rising 2.5% against a weaker UK Pound at £3483.