The commodities market is witnessing an impressive surge, with gold and silver hitting new record highs. Gold, in particular, has soared to unprecedented levels against the USD, reaching an all-time high of $2,450 per ounce. This remarkable rally is fueled by various factors, including geopolitical tensions in Iran and expectations of a dovish stance from the Federal Reserve regarding interest rates. Moreover, the sustained demand from central banks has contributed significantly to the 30% increase in gold prices so far this year.
Meanwhile, silver has also captured investors' attention by surging to an 11-year peak, surpassing the critical $30 threshold. This remarkable rise is attributed to silver's status as a safe-haven asset, coupled with the weakening U.S. dollar and its industrial applications. Investors are flocking to silver and other precious metals to hedge against ongoing geopolitical uncertainties, further driving up prices.
Looking ahead, silver is poised to benefit from increasing industrial demand, particularly in renewable energy applications. The Silver Institute's World Silver Survey report projects a 9% rise in industrial demand this year, underscoring the metal's growing importance in various sectors. However, investors should remain vigilant as silver approaches the $35 mark, a key resistance level marked by significant swing highs from previous years. A decisive breakout above this level could pave the way for a retest of the record high set in April 2011 at $47.71.
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