Gold & Silver Hit New Records, Geopolitics and the US Dollar as Catalysts!
Gold, silver, and platinum hit all-time highs on Friday, extending a remarkable rally that has lasted for several months. Spot gold prices rose 1.1% to $4,530 per ounce after hitting an all-time high of $4,549 per ounce, while silver surged more than 9%, surpassing $79 per ounce. This significant increase was triggered by escalating geopolitical tensions, including the US blockade of Venezuela and the military offensive against ISIS in Nigeria, which further strengthened the appeal of precious metals as a safe-haven asset. Furthermore, a weakening US dollar also contributed to the price increases for these precious metals.
Gold has surged about 70% so far this year, while silver has gained more than 150%, with both precious metals on track for their best annual performance since 1979. This rally has been driven by massive central bank buying, an influx of funds into exchange-traded funds (ETFs), and three consecutive interest rate cuts by the Federal Reserve.
The main factors supporting the surge in gold and silver prices are global geopolitical and economic uncertainty. Investors are increasingly seeking safe havens amid rising tensions around the world. Political and economic uncertainty, coupled with the potential for future interest rate cuts, makes precious metals increasingly attractive to investors.
Furthermore, the more spectacular surge in silver prices is driven by ongoing supply dislocations, particularly following the historic short squeeze in October. Speculative inflows are also further bolstering demand, although most available silver remains in New York as traders await the outcome of the US Commerce Department's investigation into whether imports of critical minerals pose a national security risk.
Source: Newsmaker.id
