Key Highlights
- China expanded export controls on strategic minerals in early October ¹
- Gold reached record levels this month, marking its strongest annual performance since 1979 ²
- Central bank gold purchases and dollar weakness have continued throughout 2025 ³
Gold and silver are trading at record levels in October following a series of documented geopolitical and macroeconomic developments.
In early October, China formally expanded export controls on several critical minerals, adding to existing trade restrictions and raising concerns among U.S. and allied officials about supply chain exposure ¹.
Within days of that announcement, gold moved to new historic highs. By mid-month, it had recorded its strongest annual performance since 1979 ². Silver also climbed to record territory.
Central Banks Continue Accumulating
Independent of October’s trade developments, central bank demand for gold has remained elevated throughout 2025.
According to the World Gold Council, central banks have continued adding to reserves as part of diversification strategies ³. Emerging market institutions in particular have reduced reliance on dollar-denominated assets in recent years.
That structural demand has provided a consistent backdrop to the market.
Dollar Movements Add Context
The rally in precious metals has also coincided with periods of dollar softness. Because gold is priced in dollars, a weaker U.S. currency can increase international demand and contribute to upward price pressure.
Treasury market volatility earlier this month added to broader macro uncertainty, reinforcing attention on assets historically associated with stability during geopolitical or fiscal stress.
Silver’s Industrial Component
Silver’s move reflects both its monetary characteristics and its industrial role in solar panels, electronics, and defense manufacturing.
With strategic competition increasingly centered on technology and supply chains, industrial metals have become more sensitive to trade policy shifts.
October’s developments show how commodity markets are responding in real time to documented geopolitical decisions and sustained institutional reserve trends.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
Sources:
¹ https://www.ft.com/content/rare-earth-processing-china-export-controls-2025
² https://www.reuters.com/markets/commodities/gold-surges-2025-10-17
³ https://www.worldgoldcouncil.org/research/central-bank-gold-reserves-2025
