Gold has surpassed the $5,000-per-ounce mark for the first time in history, continuing to demonstrate impressive growth. This has been fueled by changes in international politics during the Trump administration, as well as by investors' desire to move away from government bonds and currency assets.
Silver has also significantly appreciated, gaining over 6% and reaching a historic peak. Analysts predict further increased interest in commodities.
The heightened demand for safe-haven assets is likely to be driven by escalating geopolitical instability, the ongoing decline of the dollar, high liquidity, and the Federal Reserve's accommodative monetary policy.
The rise in precious metal prices goes beyond simply following inflation. Investors view gold and silver not only as a means of preserving capital but also as an opportunity for capital appreciation amid turmoil in financial markets. Despite short-lived rallies, stock markets are showing signs of overheating, prompting investors to seek alternative assets that can provide stability and returns.
The escalation of tensions between the U.S. and Canada and persisting uncertainty regarding trade agreements are pushing investors towards safe-haven assets. Gold and silver, which have historically proven to be instruments of protection against economic upheavals, are becoming especially attractive in the current situation.
The Fed's soft monetary policy, aimed at stimulating the economy, is leading to increased liquidity in the markets. Some of this liquidity inevitably flows into precious metals, supporting price growth. The weakening dollar, driven by Trump's policies and the Fed's dovish stance, makes gold and silver more attractive to investors holding other currencies.
It is clear that the rally in the precious metals market will continue in the medium term. However, it is important to remember the volatility of these assets. If the geopolitical situation stabilizes, gold and silver prices may correct. Investors should exercise caution and diversify their portfolios to minimize risks.
Regarding the current technical picture of gold, buyers need to overcome the nearest resistance at $5,137. This will allow them to target $5,223, above which it will be quite problematic to break through. The further target will be around $5,317. In the event of a decline in gold, bears will attempt to take control below $5,051. If they succeed, breaking through this range will deliver a serious blow to the bulls' positions and push gold down to a low of $4,975, with the prospect of reaching $4,893.
