Global Turmoil Ignites Safe-Haven, Gold and Silver Surge
Gold and silver prices soared as the market entered a "safe-haven" mode. The combination of geopolitical risks, trade wars, and economic uncertainty prompted investors to flock to safe-haven assets like precious metals.
The most worrisome trigger for market tension came from trade issues. Trump threatened to impose 100% tariffs on Canada if it reached a trade deal with China. Although Canada denied it would form an FTA, the headline raised concerns about a widening trade war.
On the geopolitical front, US-Iran tensions also escalated. When threats and military asset movements emerge, the market typically immediately incorporates a "risk premium," and investors' first response is often the same: seek refuge in gold and silver.
From a global economic perspective, a weakening dollar accelerated the rally. When the USD falls, gold and silver become cheaper for buyers outside the US, increasing international demand and pushing prices further.
Monetary policy factors also contributed to the defensive market. Rumors of a change in the Fed's policy direction and speculation about future interest rates have made investors more comfortable holding assets considered "neutral" and not dependent on yields, such as gold.
Silver, in particular, has added strength from the physical side. Retail demand in Asia is strengthening, with many seeking 1-kilogram bars, while physical supply is reportedly tight. This is why silver often fluctuates more wildly than gold when the safe-haven trend is strong.
Going forward, price direction will be largely determined by two factors: whether tariff and geopolitical issues escalate or subside. If the escalation continues, gold and silver are likely to remain supported; if tensions subside, prices could enter a consolidation phase or lead to profit-taking, but silver remains potentially volatile as long as the physical market remains tight. (asd)
Source: Newsmaker.id
