The silver and gold market has experienced an extraordinary surge in recent months, with prices skyrocketing to record highs. The crisis triggered by US President Donald Trump's aggressive policies and the ongoing tensions surrounding inflation, geopolitics, and Fed independence have sent investors scrambling for safe-haven assets like precious metals.
Gold, long considered a "safe haven" asset during times of economic uncertainty, has seen its price rise by over 25% this month alone, reaching new heights of nearly $5,595 per ounce. The metal's value has more than quadrupled in the past year, as investors seek to hedge against inflation risks and a weakening US dollar.
The sharp increase in gold prices is largely attributed to Trump's relentless attacks on Fed independence and his administration's policies aimed at curbing inflation. Analysts warn that this could lead to further price rises, as investors become increasingly skeptical of the US economy's stability. "Gold and silver are signalling a re-pricing of trust," says Daniela Hathorn, a senior market analyst at Capital.com.
The surge in gold prices is not an isolated phenomenon; silver has also seen its value nearly quadruple in the past year, trading above $30 per ounce when Trump announced his "liberation day" tariffs last April. The precious metal's price has skyrocketed by 50% in the past month alone, as retail investors pile into the safe-haven trade.
While central banks have been buying gold, this trend appears to be slowing down in recent months. Instead, much of the demand for precious metals is coming from individual investors and institutions seeking to protect their assets during times of economic uncertainty.
The US dollar has also been under pressure, with concerns about Fed independence and Trump's erratic policies contributing to its decline. However, unlike bond markets, which have seen a brief sell-off in treasuries, the "sell America" narrative does not seem to have extended to debt markets yet.
Despite the chaos triggered by Trump's presidency, US stocks have performed strongly over the past year, driven largely by the tech sector's impressive growth. Analysts and investors remain optimistic about the prospects for fresh interest rate cuts in the coming months, which could help prop up share prices.
As Chuck Prince, former Citigroup CEO, once said, "as long as the music is playing, you've got to get up and dance." Despite concerns about market bubbles, many investors are eager to keep dancing with their stocks, buoyed by hopes of economic growth and low interest rates.
Gold, long considered a "safe haven" asset during times of economic uncertainty, has seen its price rise by over 25% this month alone, reaching new heights of nearly $5,595 per ounce. The metal's value has more than quadrupled in the past year, as investors seek to hedge against inflation risks and a weakening US dollar.
The sharp increase in gold prices is largely attributed to Trump's relentless attacks on Fed independence and his administration's policies aimed at curbing inflation. Analysts warn that this could lead to further price rises, as investors become increasingly skeptical of the US economy's stability. "Gold and silver are signalling a re-pricing of trust," says Daniela Hathorn, a senior market analyst at Capital.com.
The surge in gold prices is not an isolated phenomenon; silver has also seen its value nearly quadruple in the past year, trading above $30 per ounce when Trump announced his "liberation day" tariffs last April. The precious metal's price has skyrocketed by 50% in the past month alone, as retail investors pile into the safe-haven trade.
While central banks have been buying gold, this trend appears to be slowing down in recent months. Instead, much of the demand for precious metals is coming from individual investors and institutions seeking to protect their assets during times of economic uncertainty.
The US dollar has also been under pressure, with concerns about Fed independence and Trump's erratic policies contributing to its decline. However, unlike bond markets, which have seen a brief sell-off in treasuries, the "sell America" narrative does not seem to have extended to debt markets yet.
Despite the chaos triggered by Trump's presidency, US stocks have performed strongly over the past year, driven largely by the tech sector's impressive growth. Analysts and investors remain optimistic about the prospects for fresh interest rate cuts in the coming months, which could help prop up share prices.
As Chuck Prince, former Citigroup CEO, once said, "as long as the music is playing, you've got to get up and dance." Despite concerns about market bubbles, many investors are eager to keep dancing with their stocks, buoyed by hopes of economic growth and low interest rates.