Gold Takes a Break
Gold prices have weakened again below $4,000/oz, while silver has also corrected after a sharp rally that took both to multi-decade highs. On Friday afternoon, Singapore time, spot gold was trading around $3,955/oz after falling 1.6% the previous day, while silver dipped slightly after briefly touching $51,235/oz—its highest since 1980.
Technical data suggests overbought conditions have been in place for nearly a month, prompting some market participants to take profits after a four-day rally that pushed gold to a record high of $4,059/oz. Market research also suggests the strong momentum that had previously driven prices to record levels is fading as traders reduce exposure from overextended positions.
Despite the correction, interest in precious metals remains supported by concerns about a heating stock market, US fiscal pressures, and the Fed's independence—part of the "debasement trade" narrative that has driven allocations to gold, silver, and crypto. Gold also fell alongside the decline in US stocks, as some investors liquidated assets to cover losses elsewhere. Nevertheless, gold is still on track for its eighth weekly gain.
On the macro front, the dollar index weakened slightly after breaking through a 10-week high, helping to contain selling pressure. Silver typically moves in tandem with gold and is sensitive to the dollar and US interest rates, but it also feeds industrial demand (solar panels and wind turbines) that now support more than half of global consumption. The silver supply deficit is expected to persist into its fifth year in 2025, keeping the underlying price strong despite high volatility. (asd)
Source: Newsmaker.id
