Both silver (XAG/USD) and gold (XAU/USD) experienced significant gains in a week marked by geopolitical disruptions and speculation surrounding the Federal Reserve’s rate-hike policy. This week marked the best performance for gold in seven months, with spot gold reaching $1,873.25 per ounce and US gold futures climbing to $1,885.80. Simultaneously, silver also saw robust weekly gains, with spot silver rising by 1.32% to $22.12 and U.S. silver futures increasing by 1.35% to $22.26.
The change in market sentiment was primarily driven by modest U.S. inflation data, which resulted in lower Treasury yields and a weaker U.S. dollar. This, in turn, increased the appeal of both precious metals, particularly as investors anticipated the end of the Fed’s rate hikes.
Global uncertainties, such as the Israel-Hamas conflict and China’s weak inflation and factory-gate prices, have further heightened gold’s attractiveness as a safe-haven asset. The short-term outlook for gold remains bullish, with prices expected to range between $1,856 and $1,904.
Silver has followed in gold’s footsteps, benefiting from the same geopolitical factors and market dynamics. The decline in Treasury yields and the weakening of the U.S. dollar have added to silver’s appeal as an investment option.
As the geopolitical landscape continues to evolve, the performance of these precious metals highlights their role as safe-haven assets during times of global uncertainty.