Gold Shines for Best Weekly Record Since 2020
Gold is heading for its best week in six years, driven by a combination of geopolitical risks and renewed concerns about the Federal Reserve's independence. After briefly hitting a record high above $4,967 an ounce on Friday, gold prices have stabilized and remain on track for a weekly gain of more than 7%, their strongest performance since March 2020.
This rise is not an isolated incident. Silver also surged to near $100 an ounce, while platinum also briefly hit a record. At the same time, the U.S. dollar weakened throughout the week, making the precious metal feel "cheaper" to many buyers and contributing to inflows into safe-haven assets.
The market sees gold's current rally as more than just a fleeting reaction. Many investors believe there is a "major shift" in the global landscape that makes gold a viable hedge against increasingly unpredictable economic and geopolitical conditions. After posting its best annual performance since 1979, gold is up about 14% so far this year.
The tension in this situation is further exacerbated by political factors and conflict. Trump's renewed attacks on the Fed, military intervention in Venezuela, and threats related to Greenland have made investors increasingly cautious about currencies and government bonds. At the same time, the Ukraine peace talks are also closely monitored, as the outcome could quickly shift global risk sentiment.
The next focus is on Trump's decision on the next Fed chair—if the chosen one is more lenient, the market could become more confident in continued interest rate cuts, which typically support gold because it offers no yield. Silver, on the other hand, has experienced a wild rally driven by a short squeeze and retail buying, coupled with concerns about China's export policies that have fueled perceptions of scarcity—resulting in high prices, sharp fluctuations, and increased volatility in the precious metals market. (alg)
Source: Newsmaker.id
