Buy or Sell? Gold prices are on the verge of collapse!
Gold and silver surged to record highs as concerns about credit quality in the US economy and escalating Washington-Beijing frictions boosted demand for safe haven assets. Gold prices rose as much as 1.2% to $4,379.93/oz on Friday—setting them on course for their biggest weekly gain since 2008 and their fastest rally since August. Buying, also fueled by bets that the Fed could make a significant interest rate cut this year, also boosted other precious metals.
Silver broke through an all-time high set in 1980 in the now-defunct CBOT contract. The white metal hit a new peak of $54.3775/oz on Friday before paring gains. Palladium and platinum are also headed for strong weekly episodes. Broader markets were shaken Thursday after two regional US banks disclosed credit problems related to alleged fraud, adding to concerns about recovering debtors' solvency. The reports come less than a week after the US-China trade war escalated, exacerbated by a lack of data releases during the US government shutdown. Traders are also positioning for at least one major price cut before the end of the year, while Fed Chair Jerome Powell has signaled a 25 bps cut this month—supporting the non-yielding precious metal.
Chinese Commerce Minister Wang Wentao blamed the US for the latest escalation and warned of the dangers of “decoupling,” following sharp comments from US Treasury Secretary Scott Bessent. Gold has surged more than 65% year-to-date, driven by central bank buying, ETF inflows, and safe-haven demand amid geopolitical tensions—trade, fiscal and debt burdens, and threats to the Fed’s independence. Silver has surged nearly 90% since the start of 2025, compounded by a historic “shortage” in London that has sparked a global physical rush as benchmark prices there surpass New York futures. Over the past week, more than 15 million oz of silver were withdrawn from New York’s Comex warehouses—most likely bound for London to ease the supply squeeze. The London-New York price spread remains at $0.70/oz (narrowed from $3 last week). At 7:57 a.m. Singapore time, silver rose 0.1%, nearing its intraday peak and up 8% for the week. Spot gold rose 1% to $4,369.14/oz (up 8.7% for the week), platinum rose 8% for the week, and palladium rose 16%, while the Bloomberg Dollar Spot Index fell 0.1% to a new intraday record high of $4,380.79/oz, according to ICE data. (asd)
Source: Newsmaker.id
