Silver and gold shine amidst geopolitical disruptions and rate-hike uncertainty

In a week marked by geopolitical disruptions and speculation around the Federal Reserve’s rate-hike policy, both silver () and gold () posted significant gains. This was the best week for gold in seven months, with spot gold reaching $1,873.25 per ounce and US rising to $1,885.80. Concurrently, silver also saw robust weekly gains with spot silver registering a 1.32% increase at $22.12 and U.S. ascending 1.35% to $22.26.

The shift in market sentiment was largely driven by modest U.S. inflation data that led to a reduction in Treasury yields and the dollar’s value, thereby increasing the attractiveness of both precious metals. The anticipation of an end to the Fed’s rate hikes further boosted this sentiment.

The Israel-Hamas conflict and China’s weak inflation and factory-gate prices have amplified gold’s appeal as a safe-haven asset amidst these global uncertainties. The short-term outlook for gold is bullish, with prices predicted to range between $1,856 and $1,904.

Likewise, silver mirrored gold’s strong performance this week, benefiting from the same geopolitical factors and market dynamics. The decrease in Treasury yields and the dollar’s value further enhanced silver’s attractiveness as an investment option.

While the geopolitical landscape continues to evolve, the performance of these precious metals underscores their role as safe-haven assets in times of global uncertainty.

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